I admit it, I have severe cognitive deficits when it comes to personal taxes. My husband and I end up owing 2-3000 every year. We don't know how to figure out our W-4's to get the correct amount taken out. We've been doing H&R Block Tax Cut program CD at home but can't navigate it to take advantage of possible tax breaks w/o going nuts. Should we just go to a personal tax advisor, accountant, fly-by-night Jackson Hewitt kiosk at mall?
2007-10-28 21:36:07 · 3 answers · asked by ? 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you wind up owing $3,000 every year, just update your W-4s to have an additional $30 per week in FITW withheld each week. You'll wind up with a small refund.
Or, you could sit down together with a blank W-4 and fill one out jointly using the worksheets on page 2 to account for the dual incomes and any deductions or credits you are eligible for. The numbers you come up with will reflect your combined withholding allowances. If you come up with 2, then each of you can take one or the one with the higher income can take both and the other claim zero.
Most dual-earner couples should also select the "Married, but withhold at the higher single rate" status on Form W-4 to ensure that sufficient tax is withheld. The withholding tables are skewed towards the "traditional" family with a single breadwinner. If you don't fit that mold -- and who does theses days -- then you should modify your withholdings to ensure enough tax is withheld.
2007-10-29 01:57:21 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It really depends on how much you value an hour of your , or your family time. The additional cost of having an accountant may offset the stress or possible savings especially if you have a mortgage. If you have never used an accountant, yes I would recommend you try it. Ask them ahead what it will cost and make that decision. How much is an hour or more of your time worth?
2007-10-28 21:46:34 · answer #2 · answered by Billy Dee 7 · 0⤊ 0⤋
U may get ur doubts clarified by your close colleagues/friends. check up with peoplo who have similar income, how they manage. I think there should not be any need for an advisor unless u do more than one activitiy/business.
2007-10-28 21:40:15 · answer #3 · answered by sambasivan s 3 · 0⤊ 1⤋