W4 form tax question?

Question

Both my husband and I just got new jobs and we are confused as to what to claim I already put 3 but he has not filled his w4 out yet was claiming 3 a mistake and now what will my husband have to claim.

yes we have a daughter

Answer 1

I answered a similar question several days ago, it is best to always claim 0 exemptions on your W-4 and state withholdings, even if married and you have kids. I explain this in my previous answer on the topic.

http://answers.yahoo.com/question/index;_ylt=Ah3qk.izaKndSCTovtx_5Tjty6IX;_ylv=3?qid=20070926140820AAnmuMX&show=7#profile-info-5Dr5cvkwaa

In your case, I'd advise that you have your husband claim 0 when he files his W-4 and state withholdings forms. You can change your withholdings by going to your Human Resources or Personnel division and tell them you want to correct the number of exemptions and refile your W-4 and state withholdings forms. It is better to change your withholdings sooner rather than later. Any additional withholdings that exceeds your tax liability, will be given right back to you as part of your tax refund when you file.

Answer 2

Depends on your situation - do you have dependents, or is it just the two of you?

If it's just the two of you, and you don't itemize and have itemized deductions significantly above the standard ($10,700 for 2007) and don't have adjustments or credits, then even if you both claim 1 you could end up owing a little at tax time, you'd be wiser for at least one of you to claim zero, the other of you could claim 0 or 1 and you'd probably be pretty close.

If you have a lot of deductions, credits, or adjustments, use the worksheets for the W-4 to see what to claim.

Answer 3

Examine your individual tax brackets and then your joint tax bracket. Your aggregate income may throw you into a higher tax bracket. If you expect to file short form (meaning you don't have many deductions), then both of you should claim zero exemptions to insure you won't owe taxes.

If you know you will have heavy deductions (i.e., you've bought a house), you can claim as many exemptions as you think would zero out your expected refund. You just have to be careful not to incur a tax liability by over-stating your exemptions. If you do, you might have to pay interest and penalties on your underpayment of taxes. And, remember to file a new W-4 for the following year!!

Answer 4

I always claim "o" and have additional $25.00 take out of my pay check every two weeks; I do it to receive a refund at time of filing my tax return. I know that means IRS is making money out of me, but I have my auto insurance due in April for $2,000 per year and my claiming "0"and having additional monies taken out help me full pay my auto insurance and then I don't have worry about it for another year. There is no way I would on my know save the $2,000.00 to full pay it. This way also doesn't take my cash I need for other things. I learn to live with the amount of money i bring home and still manage to have extra cash in my pocket. I don't miss the extra money, cause I like said I would of ever saved it, i would find something to spend it on.
Your choice, bring home more money and risk the chance of having to pay IRS back any money. I rather get a refund.