I'm a single dad with two kids. I just started a new job making $107,500.00 ($86,000.00 base + bonus). How should I fill out my w4? I put single with two dependents and they are taking out a considerable amount from my paycheck. Help!
2007-09-08 05:25:47 · 4 answers · asked by unassailed 2 in Business & Finance ➔ Taxes ➔ United States
You are 25% or 28% tax bracket. You cannot change this by adding allowances to your W-4. Your W-4 as it is filled out is probably OK, although if you are filing as Head of Household you could increase your allowances to 3 or 4.
You need someone to go over your finances to see how you can save taxes through deferred compensation, home purchase etc.
2007-09-08 05:45:14 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
A quick question. Do you get the tax deduction for both children every year?
Regardless of your answer, when filling out your W-4, you can claim one deduction for every $3400 in deductions that you plan on having regardless of your income to come as close to "breaking even" on your taxes. The deductions include your personal exemptions (3 based upon the information given) plus either your standard deduction or itemized exemptions. Also, since you are in the 25% or 28% tax bracket, you can claim about an additional $8000 ($2000/25%) in deductions to account for the $2000 Child Tax Credit.
Since I don't know if you can itemize or not, I think that you can safely claim 7 ($10200 + $8000 + $7550 = $25750/$3400 = 7.6) exemptions on your W-4. If you itemize, then you could probably claim more exemptions.
Adjust these numbers in the years where you cannot claim both children on your taxes.
2007-09-09 08:58:15 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
Do your kids live with you? If not, you can only claim them on your income tax if you have court papers, or a signed statement from the other parent, with the right legal language included, saying that you can.
If they live with you, you could fill out your W-4 as head of household, and at least three allowances (for yourself and the 2 kids), maybe more if you have a lot of deductions.
If they don't live with you, but you are allowed to claim them as dependents, then you can't claim head of household, but can still claim at least 3 allowances on your W-4.
2007-09-08 16:32:47 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You should really consult a CPA. You make a good amount of money and it would be worth your time.
2007-09-08 12:32:53 · answer #4 · answered by Keezee 2 · 0⤊ 0⤋