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    JDiaz's Avatar
    JDiaz Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 26, 2007, 11:08 AM
    What should I claim on my W4
    I am projecting that I will make around 51k this year and my wife should make around 39k. Last year we both claimed Single, 0 on our W4's and filed our taxes jointly. We have 1 child and I was wondering if it would be better for us to change what we claim on our W4. Does anyone have any suggestions on how we should handle our W4's and why?

    Thanks!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 26, 2007, 11:15 AM
    Do you own your own home? Do you have large numbers of deductions?

    The rationale here is that the more exemptions you claim on your W4, the less is withheld from your paychecks. Whatever is withheld from your pay is an interest free loan to Uncle Sam. On the flip side, the IRS doesn't like it if you are greatly underwithheld and you may incur penalities for that. So you have to try to balance it.

    However, if you don't mind loaning Uncle Sam money and like the idea of a big refund check just continue the way you have it.

    How many exemptions you have to claim to get that balance is an individual thing and is dependent on how much in deductions you have.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 26, 2007, 09:45 PM
    I agree with Scott's advice!
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