Can I claim our daughter?

Question

I have no idea how this works or what's best. The thing is my husband and I both work and we earn pretty ok money.. he says I should tell the payroll dept i want to claim our baby as dependent so they wont take so much money put of my mo. check. Can I do that? what are the pros and the cons? I always thought it didnt matter cause then on income tax were gonna recieve less...but he says we need it the money more throughout the year? What is better? What gives me more money??? thanks.

Answer 1

Doesn't matter whether you claim your daughter, your husband claims your daughter, or even you both claim your daughter on the W-4. All that matters is that when you file the tax return, you either get a refund, or breakeven, instead of owing. I have attached a link to a paycheck calculator site to help you both determine how many exemptions you should claiming for W-4's. www.paycheckcity.com

Answer 2

Either of you, but not both, can claim an allowance for her on your W-4. If you are eligible to received a child tax credit for her (she has to be under age 17) then you could probably claim 1 or 2 additional allowances.

This will give the one who claims her more in their paychecks. Your refund will be that amount less - you either get the money in your paychecks, or get the same amount in your refund. You end up with the same total amount, the only thing that changes is when you get it.

When you file your return at the end of the year, you should probably file joint - that almost always results in less total tax for the two of you.

Answer 3

If you claim your child as a dependant then you will have more money in your paycheck per week. When you file your taxes make sure you claim your child as well. There is a small possibility that you might end up paying the money back to the IRS. But I haven't heard any stories about that happening. Not to be impersonable but children can be tax write offs.

Answer 4

Do what your husband suggests and add an allowance to your W-4. If you both earn a salary, you are eligible for the $1,000 Child Tax Credit. By both of you taking an allowance for the child, you should be OK.

If you end up owing additional taxes after you file in 2008, remove the allowance so that more taxes are withheld. You do not want to owe more than $1,000 on your tax return because if you do you are assessed a penalty.

Answer 5

The more dependants you claim the more money you get though out the year, the less you claim the more they take out for taxes.

Answer 6

Sounds like your husband knows the score.

Either you get your tax refund spread out over each paycheck, or you get it in one lump sum when you file next year.

You receive the same total amount either way. It just makes a difference whether you want it now gradually, or all of it later.

Answer 7

You should claim her as one of your dependents i say its better getting the money through out the year than all at the end you can use that money with a kid.
hope i was help-full!

Answer 8

Your husband is correct as long at claiming the exemption does not end up making you short at the end of the year.

Answer 9

claiming the baby-now--will put more into weekly check,,at end at end of year,,beings youve claimed the child,you can-get monies back for day-care etc--get an accountant--you don;t want to mess with irs,,trust that