W4 Question

[Todd Wilson]

So I'll ask the panel of experts out here on what to claim for the w4.    I have been married now 6 years  and now have 2 daughters.   I been claiming Single Zero on my W4   for my entire working life.  Wife is working part time now and of course we have seen an increase in expenses both from the 2 daughters and just the fact that everything in day to day life has went up big time like food and gas and stuff.   So the question is if I was to change my W4 to Married with 2-4 dependants   how much extra would one see on a paycheck. I know it depends on what you make  but is it like 30$ extra or 300$ a month extra?!?!  Is there a % one can expect.   I dont want to owe Uncle Sam in April but could use a few hundred dollars extra a month right now and not a big fat return in the spring.



Todd

[Dans 68]

I think the rule of thumb was to claim "1" exemption for every body living under your roof. I would claim 4 and come tax day it should be a wash.

Dan

[PocketThunder]

I think the rule of thumb was to claim "1" exemption for every body living under your roof. I would claim 4 and come tax day it should be a wash.

Dan

Go ahead and claim 3 for the second half of this year and then next year you can see how that affects your taxes.  Then next year maybe you can claim 3 for the first half of the year and then claim 4 for the second half.  That is what i did anyways.  The goal is to owe the Feds $1 every year.   

[bakerhillpins]

I have 8 exemptions.

1 Wife (can't afford a second ), 3 kids, 1 mortgage. I am full time employed and the wife is part time for 2/3s of the year. I think the thing that tips the scales for us is the mortgage since it allows us to itemize our deductions. Plus I put a bunch of my salary into retirement (I think its 17%). So that offsets our income as well.

I could have sworn there was a worksheet on the back side of the W4 form that helps you figure it out.

Bryan

[edit]

Here is a Withholding calculator from the fed:
http://www.irs.gov/individuals/article/0,,id=96196,00.html

I know we have used this and it worked for us. Now how much that takes/gives I can't say. I do recall that you need to be careful you don't get to big a refund or owe to much as they apparently fine you for that stuff. 

[Tilar]

You really need to check and see what your wife is claiming on hers. If she is doing a part time job and she claims anyone it could cost you money at the end of the year if you go claiming 3 or 4 dependants and she is too.

Up until this job I have, I have always filed single and zero dependants plus $10 a week. I even did this when I was married and claiming the kids. I always had the thought that I'd rather they owe me a little than me owing them anything.  This job I'm claiming single and zero but no extra withholding.