My wife and myself just had a baby, should we both claim him on our taxes. I make a litte bit more than her?

Question

it's our first child we are trying not to owe any money in April. Should I claim my wife too? I make more than her.

Answer 1

I'm guessing you're asking about your W-4 at work, not your actual tax return. Actually if you both file your W-4s as Married and claim 2 or 3 exemptions you'll be OWING when you file, possibly BIG TIME.

For withholding purposes, you should both probably file your W-4s as Married but Withhold at the Higher Single Rate and only ONE of you should claim an allowance for your child. The reason for that is that the withholding tables are skewed towards the "traditional" family with a single breadwinner.

Normally the best bet is for the one with the highest income to claim ALL of the withholding allowances and the other claim zero. That way you won't owe at tax time and should get a modest refund.

Answer 2

You cannot both claim the baby. By law, any one person can be claimed on only one tax return. The best option is ususually to file jointly with your wife and for the two of you to claim three persons on that joint return: the two of you and the baby. If you make approximately the same amount and file separately, it is unlikely that either of you can claim the other, so you will each claim one adult and one (but not both) of you will claim the baby.

Answer 3

Listen to "bostonianinmo" he knows what he's talking about.
The other advice you have gotten here will leave you possibly owing in April.

Answer 4

first, i'll assume that you will file a joint return. if you don't want to have to owe in april, then leave both yours and your wife's at "married 2".

Answer 5

Yes claim 3 exemptions (you, spouse and one child). You will do better financially.