If I'm a single dad what's the best way to set up my W-4?

Question

I recently divorced and in the process of updating my W-4. I don't have to pay alimony to the ex but I do have to pay child support for my daughter. We both have 50/50 custody.

I guess what I want to know is what is the best way to set up my W-4 so I don't get burned at the end of the year. It's weird being single again.

Answer 1

Where does your daughter spend most of her nights? That parent would be considered the custodial parent for tax purposes unless you have a written agreement to the contrary on who can claim her, with all the IRS required wording.

If you can claim her, you can file your W-4 as single/2 or maybe even more. If not, file as single/1 allowance.

If you are paying child support, it sounds like maybe she spends more time with your ex, so she is most likely the custodial parent for tax purposes - tax law doesn't recognize "50-50' - only one parent can claim the child.

Good luck with your new life.

Answer 2

It depends on where your daughter spends most of the time, if she does with you and you can prove it then you can do w4/2 but if you really dont want to owe money to uncle sam if you claim w4/0 then you will pay more taxes and you might get a good refund, just dont be behind on your child support payments or automatically all your refund will go to your exwife. You can even do half year w/2 and th rest w/0 thats what
I do depending on how much you make if you make above 50,000 then you absolutely have to do w-0 or w1.

Answer 3

http://www.irs.gov/individuals/page/0,,id=14806,00.html

Complete this and it will help you. It is unfortunate you don't get any credit for paying child support, while paying alimony is deductible.

Perhaps you have made court records for claiming the children?

Make sure you know what is going to happen at filing time.

good luck

Answer 4

I recommend going to the IRS website. They have a tax calculator that will help you determine how to set your W-4. Just have your last paystub handy because you'll need to input some withholding information.