I had some questions regarding filling W4 forms for my wife and me. I tried filling the forms using the instructions, but want to be sure I am doing it correctly.

I have been working since Jan 2012, however my wife was not working, hence I claimed 3 exemptions in Line H of W4. My wife started working in November 2012. So for this new situation, how many exemptions can I claim and how many can my wife claim in each of our W4 forms?

I would greatly appreciate if someone could guide me.

You claim 1, she claims 1. Who's the third? It's not a matter of life and death, but it means less was taken out and you may owe more than you were planning to pay.

@joypulv: Thanks for your response.

As I had mentioned, my wife did not work prior to November 2012. Hence, I could claim a total of 3 exemptions.

Claiming 3 exemptions is fine if you are married and you plan to file jointly for 2012.

If you are both working in 2013, however, you will both need to submit new Forms W-4 claiming married status. The obne with the higher salary claims ONE exemption while the lower salary claims ZERO exemptions.

This is necessary because the first dollar of her salary is probably taxed at 15%, requiring you both over-withhold to compensate.

@AtlantaTaxExpert: thanks a lot for your extremely helpful answers.

Glad to help!