Filing taxes to get the most money without going broke each month.?

Question

i am seperated (hubby in military) and have a newborn baby. when i do my w4 what do i need to claim so that i still have a decent paycheck each month and to not have to owe anything at the end of the year. also i want to get the most back that i can for having a baby. i only make 21,000 a year from my job.

Answer 1

Here's a paycheck calculator website that should help you out. www.paycheckcity.com

Answer 2

If you will be claiming the baby as a dependent, you could claim four allowances and still be OK - one for each of you, plus two for the child tax credit.

You say separated - I'm assuming you mean legally, not just that your spouse is deployed someplace so you are physically apart.

If you haven't lived together at any time since the end of June, or if you are divorced by the end of the year, you'd be able to file as head of household for 2007, and the EIC would wipe out any taxes you would owe and actually give you something back over and above what you paid in.

Otherwise you'd have to file as married filing separately, will owe something in taxes. If you file as married filing separately, you won't be eligible for EIC. Your other option would be to come to some agreement to file a joint return if you are still married at the end of the year.

Answer 3

Are you separated because your husband is somewhere in the world because of military orders? Or are you separated because of marriage problems? It matters because if you file married jointly, you would get the most tax benefit. If you plan to file married but filing separately, and if you claim 0 on your W4 form, you would probably get a nice refund at the end of the year plus some Earned Income Credit as well because of your wages. If you claim 1 on your W4 you will have more money throughout the year and a little smaller refund at the end of the year plus the Earned Income Credit. You will claim 2 exemptions when you file your Income taxes.