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GVel
@optonline.net

GVel

Anon

W-4 What to file...

Hello,

I am recently married with one job. My wife is working as well.

What should we both have on our w4?
GVel

GVel

Anon

We also both live and work in NY

chamberc
Premium Member
join:2008-08-05
Addison, TX

chamberc

Premium Member

said by GVel :

We also both live and work in NY

Completely depends on your income. My wife and I both work, we claim 0 dependents, and mark single withholding at the higher rate. If we don't, we owe a ton come tax time.

GVel
@optonline.net

GVel

Anon

said by chamberc:

said by GVel :

We also both live and work in NY

Completely depends on your income. My wife and I both work, we claim 0 dependents, and mark single withholding at the higher rate. If we don't, we owe a ton come tax time.

I've always been told to put 0. It also says 'you may choose to enter 0 if you are married and have either a working spouse or more than one job.' My confusion lays in that when you add that all up, wouldn't you still get a 1 since the first line is 'enter 1 for yourself...?

Thanks for assisting

netboy34
Premium Member
join:2001-08-29
Kennesaw, GA

netboy34

Premium Member

there is always the calculator

»apps.irs.gov/app/withhol ··· culator/

but if I remember correctly (I'd have to go back into my records) The higher income claims 0 and the lower income claims 1 (could be reversed, like I said I'd have to check)

whichever way it is, we owe taxes slightly (like 100 bucks or so) before tax credits and deductions.

rfhar
The World Sport, Played In Every Country
Premium Member
join:2001-03-26
Buicktown,Mi

rfhar to GVel

Premium Member

to GVel
If this were me I would put "0" in and have my wife do the same and then next year look at the result and make a more permanent change.

Kilroy
MVM
join:2002-11-21
Saint Paul, MN

Kilroy to GVel

MVM

to GVel
It really depends on if you want a refund check or want to pay the government in April. Claiming 0 for both will normally get you a refund. Claiming whatever you come up with on the work sheet will require you to pay.

Cabal
Premium Member
join:2007-01-21

Cabal to GVel

Premium Member

to GVel
Lower income claims 1, higher income claims based on what your deductions will be (mortgage, etc). No need to claim 0, both claiming 1 will still get you a large return even if you don't have significant deductions.

swintec
Premium Member
join:2003-12-19
Alfred, ME

swintec to Kilroy

Premium Member

to Kilroy
said by Kilroy:

It really depends on if you want a refund check...

Everyone wants a refund check. It's the American way of thinking that a refund check is a good thing.

hortnut
Huh?
join:2005-09-25
PDX Metro

hortnut to GVel

Member

to GVel
Have used the calculator at this site throughout different times of the year to check to see if proper amount was being withheld and to tweak withhold if necessary [or put money aside].

Also calculates State withholding, if one resides in a State with its own Income Tax.

»www.paycheckcity.com/cal ··· /salary/
CmmTch
join:2002-08-10
High Ridge, MO

CmmTch to GVel

Member

to GVel
The ideal situation is for you to owe $0 and the government to owe you $0, or as close as you can get to that. I claim 2 for my wife and I, I'm the only income so that works out pretty good. We get a small refund every year. My neighbor always gets a huge refund as related to his income and thinks that's the greatest thing.

I've tried to explain to him that he is giving the government an interest free loan throughout the year, response is "I know but I like getting a big refund"

swintec
Premium Member
join:2003-12-19
Alfred, ME

1 recommendation

swintec

Premium Member

said by CmmTch:

I've tried to explain to him that he is giving the government an interest free loan throughout the year, response is "I know but I like getting a big refund"

its hard to talk cents sense into people. When talking taxes and i bring up quarterly taxes that I have to pay personally, i ask them if they think its a good idea to intentionally overpay a huge amount just so i can create a huge refund for myself, sometimes almost a year in the future. Sure, they can understand thats a stupid idea but cant give an intelligent response when i ask them why they do it every single pay check.

CylonRed
MVM
join:2000-07-06
Bloom County

CylonRed to swintec

MVM

to swintec
Nope not everyone. I know a number of people that don't want large refunds ( more in the last ten years) and actively work to get the smallest return they can.

Booost
@151.190.40.x

Booost to GVel

Anon

to GVel
Just follow the instructions on the form:
quote:
If you have a working spouse or more than one job, figure the total number of allowances you are entitled to claim on all jobs using worksheets from only one Form W-4. Your withholding usually will be most accurate when all allowances are claimed on the Form W-4 for the highest paying job and zero allowances are claimed on the others.
BoulderHill1
join:2004-07-15
Montgomery, IL

BoulderHill1 to GVel

Member

to GVel
said by GVel :

My confusion lays in that when you add that all up, wouldn't you still get a 1 since the first line is 'enter 1 for yourself...?

Yes, but you do not have to. In other words it is not required that you claim yourself, or anyone else, when filling in your W4 forms.

The instructions for the W4 form are designed to guide you to claim dependency based on certain criteria. So for example if you are single but have two children to feed, claiming 2 or 3 will result in less tax being taken out of your paycheck giving you more dollars to work with each pay period. Claiming zero will result in the most amount of tax being withheld each paycheck.

Either way is sort of up to you. The instructions are a guideline.

What really matters is when you complete your 1040 tax form each year.

You will need to be accurate here when claiming dependents. This is where you are telling the IRS how many dependents you actually, truthfully have. You don't want to misrepresent here.

The more dependents you can claim, the less your tax liability will be.

So if throughout the year you claimed zero dependents (most tax withheld) and then at 1040 time you report 3 dependents (least tax required of you) then typically this will result in a large refund.

If throughout the year you claimed 3 dependents and then also on your 1040 you claim 3 dependents you will have a very small refund if any at all.

The W4 instructions are intended to get you to the point of a zero refund/owe tax return each year. What the instructions don't really account for are circumstances that also play into how much tax you owe each year such as credits like Earned Income or child tax credits. When these are applied to you 1040 tax form it reduces how much tax you owe. So then it ultimately plays into your refund/owe status.

Pete Stone
@rr.com

Pete Stone to swintec

Anon

to swintec
said by swintec:

Everyone wants a refund check. It's the American way of thinking that a refund check is a good thing.

Would you object to a person putting $50 a week in a savings account?

swintec
Premium Member
join:2003-12-19
Alfred, ME

swintec

Premium Member

said by Pete Stone :

said by swintec:

Everyone wants a refund check. It's the American way of thinking that a refund check is a good thing.

Would you object to a person putting $50 a week in a savings account?

No, because the money is in there control (can be withdrawn and used if needed) and earns interest. To many people consider their taxes going to the government each pay period as a savings account which it isnt.

I dont mean this negatively, but many of these individuals live month to month or pay check to pay check and will say they dont have money for this or that. Well, you would have x dollars more if you didnt loan it out to the tax man each pay period for no reason.

Pete Stone
@rr.com

Pete Stone

Anon

How is it NOT a savings account? Sure it doesn't earn interest but have you looked at the interest paid lately? 1% if that AND they charge you a service charge just to have it, with paying extra tax you get to save with NO chance of pulling the money out or the bank taking it bit by bit in service charges.