I have a W-4 Tax Question? Help Please!!!?

Question

I'm trying to figure out my allowances and child tax-credit. I am a new hire e with my new employer and I'm confused.
Here's my situation.
-married for like 4 years
-New Born son this year (1 only)
-Will be making an estimated 45k for this year
-Spouse doesn't work

By following the rules on the W-4 form I came up with 6 allowances.

Personal Allowances on W-4
A) 1
B) 1
C) 1
D) 1
G) 2 (I believe eligible because salary under 57k)
H) 6 (Total)

Sounds Correct? Help Please!!

One additional question? This is the first complete year that my wife don't work, do i file jointly or separately?

Answer 1

A. Whether to file jointly or not:

If only one spouse has income and both spouses are being honest on the return, then it is usually better to file jointly. If you want to be sure, fill out the return both ways and see which results in less taxes or a larger refund.

However, if either of you is cheating on your taxes, then do not file jointly, because it is better for one parent to go to jail than for both parents to go to jail.

B. Your original question:

1. Go to http://www.irs.gov/pub/irs-pdf/p972.pdf and verify that the child meets all the requirements to be eligible for the child tax credit. If not, then G is 0, not 2.

2. If you are paying at least $1500 in childcare expenses for the baby, then you missed F. If nonworking spouse is caring for child and you have no child care expenses, then never mind.

3. The worksheet is roughly correct if you have minimal other taxable income (dividends, bank interest, gambling winnings, unemployment compensation, alimony, IRA distributions, etc.) If you have thousands of dollars of taxable income that is not from work, then you need to use a lower number of exemptions or make estimated tax payments. Conversely, if you itemize and deduct thousands more than the standard deduction, or you claim adjustments or certain credits, you may be able to use a higher number of exemptions. See the "Deductions and Adjustments Worksheet", which should be on the back of the form and is at http://www.irs.gov/pub/irs-pdf/fw4.pdf on the second page if you only have the front of the form.

Answer 2

The IRS tax code says that while you're married as of December thirty first you have 2 concepts as submitting status; married submitting joint or married submitting separate. So head of kin isn't a 'criminal' determination. Secondly, if the two one among you're working the excellent W-4 determination is to opt for married yet withhold on the better single fee. by doing this your enterprise will withhold the optimum quantity of taxes and thereby minimizing any taxes due on the top of the 365 days. in case you 2 blended make a superb type of money then you definitely can coach your HR/accounting branch to withhold one greater quantity from each and each paycheck. yet swing by your accountant for the appropriate info etc.

Answer 3

Sounds right to me based on the information provided and filling in the W-4 form.

Answer 4

Sounds safe enough.

And definitely file a joint return. That doesn't mean that you both have income listed on the form. You'll almost surely pay more tax if you file separately.

Answer 5

Looks correct to me.