Hi,

I'm working in US on an H1B visa. My employer has asked me to submit the W4 form.
I'm married but my wife is still in India. She is working in India as well.

While filling the W4 form I have selected only the following criteria:

1. Enter "1" for yourself if no one else can claim you as dependent -> Entered 1 here

2. Enter "1" if
i. You are single and have only one job; or
ii. You are married, have only one job, and your spouse does not work; or -> Entered 1 here
iii. Your wages from a second job or your spouse's wages (or total of both) are $1,500 or less

My question:
1. Have I selected the correct values?
2. Is there any other way to reduce tax? FYI, my wife is paying taxes in India as well.

Thanks,
Indresh

MukatA

1. If you put more allowances on your W4, your employer will withhold less federal and state taxes from your pay check, but your social security and medicare deductions don't change. Withholding tax is not the same as paying tax.

2. In January 2010 your employer will send you a form W2. It shows your total income and amounts withheld for various accounts (SE tax, federal tax, state tax...).

3. You will need to file your federal and state income tax returns for 2009 by April 15, 2110. The returns will show your total income (from W2) and your total federal and state taxes on that income (these tax figures has nothing to do with what you put of your W4).

4. Now if on W2 you paid more federal taxes than your federal tax liability as per your return, then you will get a refund. If on W2 you paid less federal taxes than your federal tax liability as per your return, then you must pay it.