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jaiprak · May 14, 2009, 01:53 PM

Hi,

I came here to US in July 2008. I had a kid here in US in April 2009. How much points am I eligible to claim on my 2009 W4.

With my calculations it comes like this:

A - 1
B - 1 (married)
C - 1 (spouse doesn't work)
D - 1
E - 0
F - 0
G - 2

So H = 6. Is this correct ? What would be the implication of filling this wrongly? I will end up paying taxes when I file my return.

Thanks,
JP

AtlantaTaxExpert · Jun 12, 2009, 01:44 PM

JP:

SIX exemptions is a bit much. It would result in you having to write a significant check come 15 April 2010, something you may not be able to handle.

I would claim FOUR exemptions on your W-4.

jaiprak · Jun 12, 2009, 01:51 PM

Hi AtlantaTaxExpert,

Thanks for you reply. But I still don't understand it. I am actually claiming what is true with my life situation and this doesn't change when it comes to April 2010. So why would that result in writing a check? Doesn't this exemptions directly transalate to my tax exemptions?

A deeper insight to this is highly appreciated.

Thanks,
JP

AtlantaTaxExpert · Jun 15, 2009, 07:38 AM

JP:

It is really hard to be more definitive unless you tell me what you EARN in 2009. With that figure, I could tell you what your projected tax liability would be, and then you could tailor your exemptions via trial-and-error to come to a near break-even point.

Without the earning amount, I stand by my recommendation that you claim only four exemptions.

jaiprak · Jun 15, 2009, 10:20 AM

Hi AtlantaTaxExpert,

I make around $63,700 gross in 2009.
I thought that this exemptions directly transalates to my tax exemptions. Isn't that true?

Thanks,
JP

AtlantaTaxExpert · Jun 15, 2009, 12:53 PM

After factoring in the $1,000 Child Tax Credit, your tax liability will be about $4,450.

So, your total FEDERAL INCOME TAX withholding by the end of the year should be at least $4,450.

Submit the Form W-4 wth 4 exemptions, and then do some grade-school math with a calculator using your next pay stub to determine if enough money will be withheld from your paycheck.

If so, ieave it as is.

If your calculated tax refund is MORE than $1,000, you can then re-submit the W-4 with FIVE exemptions. If the refund is more than $2,000, you can up the exemptions to SIX.

jaiprak · Jun 15, 2009, 01:35 PM

Hi,

Thanks a lot for the insight. Doing that math currently, it looks I might be writing a cheque of $300 (Max). I might claim one more dependent at the year end. So that might help as well I guess.

Thanks,
JP

AtlantaTaxExpert · Jun 16, 2009, 08:39 AM

Glad to help!