W4 forms - how many withholding allowances to claim?

Question

I know this sounds stupid, but, I don't know how many withholding allowances to claim so that I don't have to pay in when I file. I have a new job with a new agency, (left my last job of 10 years) and my situation has changed from the last time I filled one out.

What exactly do you claim if you are married with one child, and you plan to file jointly and he would be listed as "head of household". I work full time, he works both full time for the police and "on call" as a fireman for another agency. So, there are three regular employers, not to mention he works for other police departments doing details (so he has to fill out forms for that too). How do I fill this out without losing my whole check to make up for his taxes and without having to pay in at the end of the year? Any ideas?

We don't pay into social security because we work for the county & state (no one in the departments do - we not trying to get away with anything), instead that money goes into a retirement fund (because we are not eligible for soc sec when we retire).

Answer 1

First of all you will file Jointly. He CAN NOT file "head of household." The only alternative is "married filing separately" and you DEFINITELY don't want that one. You need to fill out your W-4 with married and claim 0. Depending on what your husband has done at his two jobs you may be OK. The problem will be with the Schedule C he has to fill out for his work on the additional Details. Not only will you have to pay the tax you will also pay both halves of his Social Security for that income. If the income from the additional Details is substantial then Quarterly payments should have been paid and you may owe at tax time. Be sure to reduce that income by any expenses he incured while earning that income.

Answer 2

No, a married person isn't "head of household" - that's a status for someone who is single but providing a household for a closely related dependent - rates aren't quite as good as married filing jointly.

You have three people, so that's three allowances, plus if your child is under 17 so you get a child tax credit for him or her, you might be able to claim another allowance or two. But these other jobs your husband has besides his main job - is he working as an employee, with taxes taken out, or as an independent contractor?

You'd probably be safest just claiming three between you until you see how everything works out - not each of you claim 3, but maybe he claim 2 on his main job only, and you claim one. If he's working as an employee, you will probably be OK. If he's working as an independent contractor (no taxes taken out) on any of his side jobs and he makes more than a few hundred dollars total for the year that way, you'd be wise to both claim zero all around - if his side income is high, even that might leave you owing some.

Answer 3

As a couple, you can claim one exemption for every $3500 in planned deductions for 2008. Planned deductions are the combination of your personal exemptions and the greater of either your itemized deductions or standard deduction.

If it turns out that you are allowed to claim 10 exemptions, for example, then, as a couple, you will claim the exemptions. It's not 10 exemptions each.

Since your husband works 3 different jobs, you may want to claim one or two less exemptions just to be safe.

Whatever you claim on your W-4 should not affect your withholding for your retirement fund since you do not have SSN taxes withheld.

When you file your 2007 taxes, you can use those as a guide for filling out your W-4.