Tax, Tax and Tax

[rob999 51]

Hi All,

So I have luckily managed to get a job offer to start work in November. I'm just trying to get my head around the tax system which is very different to the UK where I could basically allow the government to do it for me (as I was a PAYE)! My wife was thinking about submitting tax next year as "Married Filing Jointly". My wife has been employed full time all year in a different company.

I left my job in the UK in June so I do have UK income for this year which is subject to UK tax (though I have submitted a P85).

So to make sure my mind is screwed on properly, the W4 is used to estimate how much tax to withhold for this tax year to pay the tax "bill" in April next year based on what you think you'll earn and any deductions you believe are applicable to your e.g. child. If you withheld more tax than you should then you'll get a tax refund, it it's the other way then you'll pay a tax bill in April, correct?

So in the estimate, tax is combined between the couple, so as we both have jobs how does the withhold work? Do they take 50% of the tax due from each of our pay checks to then pay the combined tax?

I'm paid hourly, with overtime, no bonus (my wife is annual, no overtime, but will have a bonus of unknown amount). I will do overtime so would I estimate my salary with what I think I will work e.g. 48 hr week or just the minimum 40hr week?

My wife has a son from a previous relationship, now my step son. As we file jointly I would class him as a dependent on my W4 right?

My wife uses turbo tax to file, but does anyone hire a tax adviser for their first time filling then go their own since the joint thing is new to get set-up with the correct understanding first?

Thanks!

Rob

[kris&me 572]

Rob

this year you need to pay someone to get taxes done

As you were married and had income outside the US, that is elifible for payment for taxes here also whether you file separate or together

this year will be different than the following years where she can back to her turbo tax

always a plus to file combined (my opinion only)

you can put son on W 4 as she can too / you can change your W 4 anytime if you need more withheld

When the the tax tables come out in the spring, estimate your 2 incomes for 2016 and adjust the tax withheld

[Nich-Nick 3,354]

I sent you a message.

[MariaR323 199]

Hi All,

So I have luckily managed to get a job offer to start work in November. I'm just trying to get my head around the tax system which is very different to the UK where I could basically allow the government to do it for me (as I was a PAYE)! My wife was thinking about submitting tax next year as "Married Filing Jointly". My wife has been employed full time all year in a different company.

I left my job in the UK in June so I do have UK income for this year which is subject to UK tax (though I have submitted a P85).

So to make sure my mind is screwed on properly, the W4 is used to estimate how much tax to withhold for this tax year to pay the tax "bill" in April next year based on what you think you'll earn and any deductions you believe are applicable to your e.g. child. If you withheld more tax than you should then you'll get a tax refund, it it's the other way then you'll pay a tax bill in April, correct?

- Correct; if you withhold more than the total tax liability on the tax return, then you would have a refund of the overpaid tax.

So in the estimate, tax is combined between the couple, so as we both have jobs how does the withhold work? Do they take 50% of the tax due from each of our pay checks to then pay the combined tax?

- The witholding is calculated based on your entries on the current W-4 form for the year. You can change that at anytime during the year and as many times as you need to.

I'm paid hourly, with overtime, no bonus (my wife is annual, no overtime, but will have a bonus of unknown amount). I will do overtime so would I estimate my salary with what I think I will work e.g. 48 hr week or just the minimum 40hr week?

- Do not estimate on overtime you think you would have. The correct witholding will already take care of that.

My wife has a son from a previous relationship, now my step son. As we file jointly I would class him as a dependent on my W4 right?

- Technically, yes. However, be careful here because if your wife is using that allowance on her W-4 as well then you run in the probability that you both will claim an allowance for one child. This would mean less tax withheld and a possible underpayment of tax on the tax return.

My wife uses turbo tax to file, but does anyone hire a tax adviser for their first time filling then go their own since the joint thing is new to get set-up with the correct understanding first?

Thanks!

Rob

Once you start your new job in November, make sure you talk about this with your wife so that you can withold correctly through the end of the year. If possible and it doesn't hurt your pockets, I would probably suggest to use the Married status on your W-4 and 0 for allowances. It would only be 2 months and you wouldn't worry about underwitholding (at least on your part).

Come time for 2016, you can then both sit down and agree for the W-4 for each for 2016. Usually, you would want the higher income spouse to claim the allowances.

Hope this helps answer your questions.

~Maria