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suneesatya · Feb 2, 2012, 11:36 AM

Hello,
I have a question regarding W4 form filling.

First of all,currently I am on H1B for almost 4 years(started Octeober 2006) and I came to US in 2003 as a student.
My wife came to US last year (Jan 2011) on H4.
So, At the beginning of the year I changed my W4 to Married with 2 Exemptions/allowances.
Then she changed her VISA to F1 and then she got a Full time Intern in Aug 2011 under CPT.
At that point I didn't change my W-4 as I don't know that whether I need to change or not and so, my pay checks were still ran under married with 2 allowances. Is that a problem when I file my tax returns this year?
And she filled her W4 as single with 1 Exemptions/allowances. Is this correct?

Then in October I changed the jobs and when I filled the W4 form, I again filled as Married with 2 allowances and all my paychecks are running using that W4. Is that a problem again when I file my tax returns this year?
Then in December 19 my wife changed her status to OPT and she didn't fill any new W4 form and so her paychecks are still running run as Single with 1 allowance/Exemption. is this correct?.

So, should I change my W4 now? And if so what should my W4 form would be whether Single/1 or Married/2 or Married/1?

Should my wife also change her W4 now? And if so what should my W4 form would be whether Single/1 or Married/2 or Married/1?

Now,When I file for tax returns this year should I file as MFJ or MFS?

Also, I paid for her tution fees around 26000$ and how can I claim these in my tax returns.

Please any advice would be helpful.

Thanks,
Satya

MukatA · Feb 2, 2012, 11:48 PM

How did you file in 2010?

AtlantaTaxExpert · Feb 8, 2012, 03:03 PM

Satya:

First, you are OVER-stressing about the W-4, which just designates how much is withheld, and the withholding is an ESTIMATE of taxes paid. What counts is the actual tax return.

For 2012, YOU claim Married with ONE allowance and your wife claims SINGLE with ONE allowance, to make sure enough taxes are withheld.

For 2011, you can file Married Filing Jointly. Just MAKE SURE that your wife's employer is NOT withholding FICA (Social Security and Medicare) taxes, as her F-1 visa status exempts her from FICA taxes.

By filing jointly, you WILL be able to claim the education credits/deductions for the tuiton she paid in 2011, just like a U.S. citizen.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.