[supera]

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]

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]

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]

Agreed!