[smundhra]

Hi,
I am in US since Jan first week of 2008 and am not sure how many Exemptions can claim in federal and state W4. My wife is on H4.

So for I have been claiming only one Exemptions and the marital status is single. When or can I change that to married. Will that help me save some tax.

Regards,
Saurabh

[AtlantaTaxExpert]

Saurabh:

I believe that you can claim TWO exemption on MARRIED status, but some employers REQUIRE their foreign national employees to claim only ONE exemption at SINGLE status, citing an IRS regulation that they say requires this.

They are wrong. Withholding under SINGLE status with ONE or ZERO exemptions applies ONLY to foreign national who would file as a non-resident alien, filing Form 1040NR or 1040NR-EZ. The IRS requires this to ensure enough taxes are withheld to force the foreign nationals to file a tax return to get the refunds.

You will file as a resident alien, which means you can submit a W-4 as MARRIED with TWO exemptions.

[MukatA]

If you are on H1-B, then for 2008 you will file resident tax return. You can file joint return. You status is married. You can claim 2 or 3 allowances and married status. File a new W4.
Read: Your U.S. Tax Return: Filing W4 Employee's Withholding Allowance Certificate