On W-4 Recently married. Claim as Married, but withhold at a higher Single rate?

Question

I've always claimed 1 on my taxes to get most out of each paycheck. I recently got married and am filling out new tax info. I am claiming 1. Do I claim Married, but withhold at a higher Single rate? We bought a house but the mortgage is in my name only. I thought it would be better to claim single as I would get more money back based on my income/and interest only mortgage.

Answer 1

Withold at higher single rate means just that - they take money out as if you had checked single. Depending on your income, it might or might not make much difference.

If you file a joint return, then the mortgage being in your name only won't make any difference tax-wise. The interest and real estate taxes would still be eligible to be deducted. If your total itemized deductions is over $10,700, then you'd itemize

Answer 2

If you will be filing a joint return, then there is no point not claiming your correct marital status. You may get a bigger refund by still claiming single, but that is because more money than is needed is being taken out of your paycheck.

What you claim on your w-4 has no effect at all on what you pay in taxes. If you claim single with no exemptions, your employer will simply take out more money with every paycheck. You will get that money back when you file your tax return (in other words, you are making an interest free loan to the government!).

If your w-4 is listed as married with 2 exemptions (you and your husband) then you employer will withhold an amount more in line with what you really should be paying in taxes. The down side to this is that you will not be getting that big refund check. However, each paycheck will be bigger.

Answer 3

There are two issues here. First thing you determine for your W-4 is you marital status. You are married that is easy. Second the number of "allowances" you wish to claim. You are now (as a married couple) able to claim 2. Now you can claim 1 or 0 if you want them to withhold more money from your paycheck.
When your employer figures your withholding they go to a chart for married (regardless of the number of allowances) and look for the number of allowances. So if you put Married 2 on the W-4 they look under Married with 2 allowances.