Need help with my W4...

[KevandKiki2 0]

I just started a new job...got a call from payroll saying..uh..did u know that you told them to take 400.00 a check off ? I just started laughing...yikes..Here's my problem: I have 3 kids. My wife just quit her job to watch the baby. So I will be writing down how many exemptions?I enetered 1 for myself...1 for my wife....3 for the kids....then its says child tax credit line G so enter 2 for each kid..so I add another 6 (2 times 3 kids..) in this column..Total on line H for total exemptions: 11

My wife says yikes! we should have like 4 or 5 at most or owe a bushel at tax time.

Payroll wants the new figures at 10 a.m. tommorrow.

What is a nice balance for my situation....wife just left job..I just started...3 kids...What did u guys/gals do on yours?

Appreciate your time and responses as always...

Best.

Kev

Edited August 24, 2007 by KevandKiki2

[almaty 19]

go for 2...so, you get a refund

[kitkat1 5]

go for 2...so, you get a refund

If you get a refund, you're giving the US government an interest-free loan all year long. Why not figure out how to do it correctly (I'm sure you'll find several online sites dedicated to taxes that will help you figure out how to determine the correct withholding) so you break even -- then you can actually earn some interest on the "extra" money in your paycheck every month.

[mawilson 2,133]

Five exemptions to be safe. One for you, one for your wife, three for the kids.

[almaty 19]

go for 2...so, you get a refund

If you get a refund, you're giving the US government an interest-free loan all year long. Why not figure out how to do it correctly (I'm sure you'll find several online sites dedicated to taxes that will help you figure out how to determine the correct withholding) so you break even -- then you can actually earn some interest on the "extra" money in your paycheck every month.

i agree sister kit kat, that is the proper way, but allot of folksuse the $$$ and come up with a hit on april 15

[russ 1]

i agree sister kit kat, that is the proper way, but allot of folksuse the $$ and come up with a hit on april 15

Here's a secret - filing on time is most important. Paying late is not such a big deal. If you file and owe a few bucks without paying, usually the IRS just sends you a bill a few weeks later - often with no interest. Always file your return on time, even if you can't pay it all.

[Aymerlu 3]

I made that mistake once and ended up having to pay a buttload in taxes. I claim 2 now and with childcare and other deductions, I always have a healthy refund.

[chaplin 0]

Don't know if this is too late, but this is directly from the IRS website

IRS Withholding http://www.irs.gov/individuals/article/0,,id=96196,00.html

[kitkat1 5]

go for 2...so, you get a refund

If you get a refund, you're giving the US government an interest-free loan all year long. Why not figure out how to do it correctly (I'm sure you'll find several online sites dedicated to taxes that will help you figure out how to determine the correct withholding) so you break even -- then you can actually earn some interest on the "extra" money in your paycheck every month.

i agree sister kit kat, that is the proper way, but allot of folksuse the $$$ and come up with a hit on april 15

Ahh - I know, it requires discipline but really, it makes a lot more sense than giving the government your money for an entire year when you *could* be earning interest!

[Nanusia & Lukaszek 0]

i agree sister kit kat, that is the proper way, but allot of folksuse the $$ and come up with a hit on april 15

Here's a secret - filing on time is most important. Paying late is not such a big deal. If you file and owe a few bucks without paying, usually the IRS just sends you a bill a few weeks later - often with no interest. Always file your return on time, even if you can't pay it all.

No way jose! They do not give you any slack on cash you owe them. I do taxes, and see people coming back asking why the IRS is sending them a bill for $0.43 because they paid a couple days late. The IRS starts counting interest from the April 16th, no excuses

[Heracles 417]

Five exemptions to be safe. One for you, one for your wife, three for the kids.

yep sounds about right..

[Nikita2Charles 32]

Since your wife is not working now you can go for 3. Here we can adjust the W4 as your living situation fits, There's one gentleman here who adjust twice a year, get most of his money upfront and change it mid year to start paying the taxes, with house mortgage deduction he still comes out on top, leave a little buffer in there.

[Hilarious Clinton 452]

Don't know if this is too late, but this is directly from the IRS website

IRS Withholding http://www.irs.gov/individuals/article/0,,id=96196,00.html

I recommend using this calculator.