What should I claim on my W4

Question

Jan 26, 2007, 09:08 AM

JDiaz

New Member

Join Date: Jan 2007

Posts: 1

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!

Answers

Jan 26, 2007, 09:15 AM	#2

ScottGem

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Join Date: Jan 2003

Location: LI, NY - USA

Posts: 21,904

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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.

Jan 26, 2007, 07:45 PM	#3

AtlantaTaxExpert Tax Expert Join Date: Feb 2005 Location: Atlanta, Georgia Posts: 9,706	I agree with Scott's advice!

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