Hello. My husband accidentally claimed 3 this year! He just got the form to change it. We have a 3 year old son. Should he claim 0 or 1? We are probably going to owe the government from the last 7 months anyway.
2007-07-06 00:59:40 · 3 answers · asked by Lyss 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
0 for rest of year to minimize taxes due.
Maybe 1-2 next year depending on if you are looking for a refund or more cash in your paycheck
2007-07-06 01:02:21 · answer #1 · answered by wizjp 7 · 0⤊ 1⤋
If your husband's job is the only source of income for the household -- that is, you don't work outside the home or have any significant unearned income like interest or dividends -- he should be claiming Married and 3 or 4 withholding allowances on his W-4 at work.
If you read the instructions on the Form W-4, it will tell you to take one allowance for yourself, one for your spouse, one for each child or other dependent, and a "bonus" allowance if you hold only one job and your spouse does not work. In your case, that works out to 3 or 4 withholding allowances.
Claiming 3 will result in a refund at the end of the year. The Child Tax Credit could make this a significant refund so claiming 4 would actually get you closer to even money with the IRS. The advantage to claiming 3 or 4 is that he'll get more money in each paycheck.
If you work outside the home or are self-employed things could get more complicated. If this is the case, you should sit down together with a Form W-4 and fill it out together using the worksheets on page 2. This will help you account for both incomes (as well as any deductions if you have any) and arrive at the correct number of withholding allowances. The number you arrive at in this case is the total number that you should claim between the 2 of you. Generally the one with the higher income should claim all of the allowances and the other should claim zero.
2007-07-06 01:42:54 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
i do taxes for the first six months you are basically paying the irs i would change if you can to zero so that you have money back at the end of the year also i would consider owning a home based business to receive numerous tax deductions visit this site it has total integrity www.creatingdreams.acnrep.com
2007-07-06 01:38:12 · answer #3 · answered by ajrrst 2 · 0⤊ 1⤋