Ask Experts Questions for FREE Help !
Ask
    supera's Avatar
    supera Posts: 22, Reputation: 1
    New Member
     
    #1

    Dec 26, 2007, 11:18 AM
    Urgent : Reg W4 allowances
    Hi ATE/MukatA,

    I need to send an updated W4 (we are resident aliens).Should I put in the allowances as following?

    Option 1
    ==========
    1 for myself
    +1 for married,one job,and spouse does not work
    +1 For Spouse
    +1 Number of dependents
    +2 Child Tax Credit - Each for one eligible child - Total income less than $85,000 if married
    Total - 6 allowances

    or should it be

    Option 2
    ==========
    1 for myself
    +1 for married,one job,and spouse does not work
    +1 For Spouse
    +1 Number of dependents

    Total - 4 allowances

    Pl advise based on your experience.I think option 1 is applicable to me but I was just concerned about the high number of allowances (6 in this case).

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Dec 26, 2007, 03:01 PM
    Supera:

    RE Option #1: You CAN claim six exemptions if your intent is to reduce your refund and perhaps actually pay when you file your return in 2009. This, BTW, is the SMART way to go, as ANY refund is an interest-free loan to the government.

    Just make sure you have the funds when you have to write that check with your returncome 15 April 2009.

    If you want to play it safe, go with Option 2.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Dec 27, 2007, 03:00 AM
    If you are married, filing jointly, spouse does not work, have two dependents, and you can claim child tax credit for 2 children, you can claim 6 allowances on W4.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Dec 27, 2007, 12:22 PM
    Agreed!

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Netball allowances [ 2 Answers ]

I know the positions but I can't remember where all the players are allowed too go on the court, does anyone know? Sorry if I miassed the forum where this is meant too go.

Allowances for Receivables [ 2 Answers ]

I don't know have clear view about Allowances for Receivables and why business's need to make it? Thanks


View more questions Search