Hi Tax Gurus! We are newlyweds w/ no dependents, and we have a question about our W-4 and State personal withholding allowance tax forms. Right now we are both claiming 0 for our withholding allowances on our W-4 and state tax forms, so we are both getting the max. taken out in taxes each paycheck and get decent sized tax returns.
What we would like to do is have less taxes taken out from each check rather then get money back in the form of a large tax return. Ideally break even and not owe or receive money.
Here are our questions:
1.) Being married, between the both of us, what is the maximum number of withholding allowances are we able to legally claim?
2.) Does the number of withholding allowances on your state tax Personal Withholding Allowance Form have to match the number of withholding allowances you claim on your W-4?
3.) Does the number of withholding allowances you claim on your W-4/State forms have to match the the number of personal exemptions on your tax return?
2007-07-18 01:21:40 · 4 answers · asked by ♪ La La La Not Listening... 3 in Business & Finance ➔ Taxes ➔ United States
We each have only one full time job.
2007-07-18 01:24:09 · update #1
By having no dependents I mean we have no children.
2007-07-18 01:28:17 · update #2
We have a mortage and we pay property taxes.
2007-07-18 01:41:26 · update #3
You can each claim married, one allowance, and be pretty safe. The number on your W-4 doesn't have to match your state form, but it probably makes sense to each claim 1 on both. And no, the numbers don't have to match your tax returns.
If your mortgage payment is huge so you have very high itemized deductions, you might be able to claim an additional allowance or two without getting into trouble, but you'd probably be wise to just claim the two until you see exactly how you come out.
2007-07-18 03:33:24 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you under withhold, you will owe a penalty. I would suggest to stay at a 1 and enjoy the lump sum check at the end of the year. Its not like any savings account will pay enough interest right now to offset you getting an extra 30-40 bucks a month. A 0 on your W-4 will get your the lowest amount withheld, but you have to be very careful about the penalties that could be charged with you file your return if you don't pay enough in. The form that you fill out that derives the 1 above the W-4 is in use for a reason, so you have the correct amount withheld. Most single people won't have a large refund anyhow, unless you can itemize which usually includes owning a home for most people. www.irs.gov will have anything you need when it comes to IRS forms.
2016-05-21 16:39:17 · answer #2 · answered by bernadine 3 · 0⤊ 0⤋
There's not much difference btwn claiming 0 and 1
No the the w-4 forms dont have to match.
Unless you have a mortgage, property taxes and/or any other large tax deductions, you better stick with 0 or 1 or you will owe money. If you want to see what would be taken out for each check, go to IRS.gov and search for Publication 15, flip through the Adobe pages until you get to the tax tables and you can see exactly the difference btwn claiming 0 and however many you want.
2007-07-18 01:40:41 · answer #3 · answered by hirebookkeeper 6 · 1⤊ 0⤋
Can claim married 2
Supposed to
No. Most people take out 0-1 to get some back at end of year
2007-07-18 01:24:47 · answer #4 · answered by wizjp 7 · 0⤊ 0⤋