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Taxes: How many to claim on W-4 (Expert advice only please)? |
I am getting married tomorrow, and in leu of that, my fiancee and I are updating our w-4's. A little background: a) She has a son, 2 years old, that lives with us full time b) I make 27,000/yr c) She makes 16,000/yr d) We rent an apt (but plan to buy in about 2 years, hopefully less) e) She currently claims our son If you need any more information, let me know. If you want to contact me directly, jon at phazm dot net is the best address to reach me by. I want to know what would be the best amount to claim. (We really don't know anything about this, it's sad really) We don't know if we should file jointly or seperately, who should claim our son, etc. Thanks in advance! If you file jointly, your total income will be 43000 yearly. If you claim the standard deduction, you will get 10300 taken off plus 3300 for every dependent and exemption. So you, your soon-to-be wife, and her son, is 9900 in exemption amount. 10300+9900= 20200. 43,000-20200=22800. The formula for this amount will be $1510 plus 15% of the excess over 15100. so... 22800-15100= 7700*15%= 1155+ 755= $1910 is your total tax for the year. Therefore, each week you want your employer to withhold that amount divided by 52 weeks which is $36.73 for you and your spouse combined. So...for this I will assume you get paid weekly(it will be the same answer no matter what anyway). 43000/52 weeks = $826.92 per week(average). For every exemption claimed, they will subtract $63.46 off your taxable income. All you need to break out even is 36.73. So if you claim 4 exemptions TOTAL, the amount of tax taken out will be 826.92-(4*63.46)-154= 419.08. This will be taxed at 10%, which will be 41.91 taken out per week. Multiply this by 52 weeks and it equals $2179.32 paid out in taxes, and since you will only owe $1910, this will result in a refund of 269.32. This is the closest you can come using allowances on your W-4's. OR you may opt to claim like 10 allowances and have additional tax taken out that will equal $36.73 per week. I recommend doing 4 allowances total on your W-4's. Conclusion, you should BOTH claim 4 allowances on your W-4's. note also that this is done using the standard deduction and no other deductions or credits, if you itemize more than your standard or qualify for things like the child tax credit, then you will get more of a refund. If you have any other tax related questions, feel free to contact me. EDIT: More information sent to you, please ignore my above answer! Source(s): College student with major in accounting Easy. Claim Married 3 for Both of You. I do payroll and Accounting. One of the two of you should claim the son. The other claim Themselves So one claim 2 the other claim 1. This way you will not have to worry about anything when filing. You will get earned income for your son at the end of the year. The IRS has a withholding calculator that will tell you exactly how many exemptions to claim based on how much each of you have paid thus far and your estimated tax liability. Just click the link and answer a few questions: http://www.irs.gov/individuals/article/0... I am a tax attorney. |
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