[optmytax]

Hi,

I am trying to fill my NJ W4 form. I am married and I am planning to file as Married Filing Jointly. It says that If you are married filing jointly, you will be held at Tax Rate B. Also, it has some wage chart. Should I simply put Rate B there or should I use the wage chart. Is the wage chart only applicable when I have other sources on income other than my primary occupation ? Please help. If I use wage chart, I am ending up in the rate E.

Also, NJ W4 asks for number of allowances. Being married and my wife is not working, it seems that I should claim 2 allowances but I am not sure. Should I claim 1 or 2. Please help

[ebaines]

The wage chart on NJ-W4 is only applicable if you or your spouse have sources of income other than your wages from this job. If you look at the chart note that if your other sources of income = 0 then you are in tax rate B. So I must assume if you find yourself in E it must be because you have significant other income - your wife doesn't work so you must have significant investment income or income from another job. If this is correct, then you should indeed select E. But if this job is your only source of income you should indicate B.

As for allowances - I suggest you indicate 2.

If after a year on the job you find that the amount being withheld is too little or too much you can always submit an updated W4 to your employer to make the amount of withholding more appropriate for your situation.

[AtlantaTaxExpert]

ebaines:

I AM impressed. Such attention to detail on a state issue, and it is not even YOUR state.

[ebaines]

ATE: Thanks! Actually I lived in NJ for 25 years so I'm a bit familiar with how they do things...

[AtlantaTaxExpert]

Ah, yes! That explains your expertise in both NJ and NY tax matters! :-)

[optmytax]

Thanks ebaines for the precise and detailed answer! I must say you're doing a great job by helping newbies like us. Thanks you again. Also, I would also like to thank ATE for his help on my previous questions.