I am the top earner and I claim married w/ 2 exemptions.
my wife claims married(withhold at the higher single rate) w/1 exemption.
that being said does anyone know if we may be underwithheld?
who should ideally claim the exemptions? the top earner or the secondary earner?
2007-12-01 09:03:25 · 5 answers · asked by locotrentrece 1 in Business & Finance ➔ Taxes ➔ United States
You have to see how your taxes come out, because I don't know what you make, nor what your deductions are. How many children do you have?
If I had to make a guess, I'd say you are underwithheld. Mrs. Guy and I both work, we both claim single higher rate, no deductions, and I have $60 per paycheck taken out extra after we got burned a couple years back.
But maybe you have better deductions than we do.
2007-12-01 09:18:45 · answer #1 · answered by Computer Guy 7 · 0⤊ 0⤋
You don't give enough information to give an accurate answer. For example, do you have children, do you itemize, etc...?
Assuming that you don't itemize, my best guess would be that you will still will get a refund at the end of the year.
Read IRS Publication 15 to see how tax withholding works based upon your W-4. Start around page 35.
In 2008, each exemption that you claim on your W-4 means that you are expecting $3500 in planned deductions.
2007-12-02 09:51:01 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
I got burnt twice. Paid $3,500 one year and paid $2,500 the following year. My wife and I had good paying jobs, three kids at home and I was receiving a pension. We had to change our W4s (Line 5) and withhold additional amounts on Line 6. For 2007, the standard deduction for Married Filing Jointly is $10,700. Each exemption is worth $3,400. Take your last pay stubs and see how much federal tax has been taken out. Then check out a tax table. This might give you some indication on where you are at. You may have other deductions as well such as mortgage interest, IRA contributions, interest etc.........that will affect your bottom line.
2007-12-02 08:17:38 · answer #3 · answered by Gary 5 · 0⤊ 0⤋
Probably will have to pay, unless you have children you didn't mention. You have claimed a total of three allowances, and only have the two of you. If you have high adjustments or high itemized deductions you might be OK, but otherwise you will probably owe.
It's common but certainly not required for the higher earner to claim the allowances or to split them.
2007-12-01 17:36:48 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
It would appear that between you and your wife you have claimed more exemptions than entitled. As a result when you combine your incomes for tax purposes, you will be short in your prepayments of taxes and will have to pay more with your return.. The ideal situation is for your wife to claim no exemptions.
2007-12-01 18:36:09 · answer #5 · answered by googie 7 · 0⤊ 0⤋