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jannavi_my · Oct 31, 2011, 12:25 AM

Hi,

I am married . Me and my spouse are working. I have already filled my W4 and now my spouse if filling a new W4 as he changed jobs. My question is what should he enter for the below question .

C. Enter "1" for your spouse . But you may choose to enter "-0-" if you are married and have either a working
Spouse or more than one job. (Entering "-0-" may help you avoid having too little tax withheld.

Should he enter "1" as I have already entered "0" for this same question in my W4.

Any idea ?

Jannavi

Fr_Chuck · Oct 31, 2011, 03:00 AM

Ok, what you have is deciding how much tax you want held out, depending on your tax situation. Do you have a lot of other deductions ? Normally do you get back a large refund check, or do you often owe money ?

Also you can change your mind and do a new form anytime you want, if you feel enough tax is not being held out.

This is a personal choice. I am a believer in not paying in any extra, So I try to balance withhoding so that I don't owe anything but don't get anything back, Others like to have money held out for taxes so they can get it paid back in tax refunds.

The choice is just your opinion of how you like to file.

ScottGem · Oct 31, 2011, 03:29 AM

What you list on your W4 governs how much is withheld from your pay. The more exemptions you claim the less is withheld.

The thing is that what is withheld from your paycheck is, essentially, an interest free loan to the taxing authority. You get back anything your pay over what you actually owe, but the government is using your money in the interim. Personally I prefer to have the use of my money. On the other hand, if you are underwithheld, you may be subject to penalites.

P.S. Please take more care in choosing w2here to post, I moved this from the Spreadsheets forum since it had nothing to do with spreadsheets.

jannavi_my · Oct 31, 2011, 10:39 AM

Thank you ScottGem for your answer and for moving it to the right place. This is my first time at ask.com so did a mistake, am sorry for that .
Thank you Fr_Chuck for your reply

Last 2 years we got tax refunds but again I am working only from this year so it could be different this time.

We don't have any other deductions. But my only point is we shouldn't end up paying too much tax. So since I have entered 0 I thought as per the question "C" my husband should be entering one.
That is either one of the spouse can enter 1 and the other 0. Isn't my understanding correct.

ScottGem · Oct 31, 2011, 03:00 PM

Either spouse can enter anything they want. It may be a good idea to have one of you entering 0 and the other a 1. But next year, if your refund is too large, then increase it.