W-4 Allowance Question?

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Well last year I won $ 71,479 for a job. Over the last 7-8 years I’ve been claiming 0 on my W & Single-4, because I do not use the best intelligence, and enjoy wide support …. But as I just turned 30 I’d get the smartest and most of my money through the year instead of lending it to Uncle Sam interest-free basis. My wife just started work in February, and makes about $ 20,000 per year, in my opinion @ $ 10.50/hour. In addition, we have no mortgage payment as rent, and two children, aged 6 and 4 My wife is now married and claims his W-2 4.Ma holding a calculator with a site Web and she suggested I apply for benefits and 10 for my wife to make a kind of 5. I certainly do not want to pay respect and support we would be wise to simply wait to go back to maybe about $ 1200 ….. Add Comments> we do not pay for after school care for children in a private school they attend .. The approximate annual 3K …. Please help, thank you!

4 Comments
  1. Reply
    DJ
    January 27, 2011 at 5:29 am

    If you really want to check the math look at http://www.irs. gov for Publication 15 Circular E which will give you the tables used for calculating the withholdings –

    To find out how much you will owe the IRS for 2008, take a 2007 return and recalculate the return using 2008 figures – including your wife’s income. This will give you a ball park tax figure and you should aim to have that much taken out in 2008 total between both paychecks.

    Are you aware of the safe harbor rules? If you have withheld in 2008 the amount of your 2007 tax liability and you owe less than $ 1,000 in 2008 you will not be subject to a penalty. For more information – search “safe harbor” at http://www.irs. gov.

  2. Reply
    Judy
    January 27, 2011 at 6:18 am

    Not sure what calculator you used, but 10 and 6 is way too high unless you have some large credits you didn’t mention.. Eight split between you is close, but you’d still very possibly owe at the end. I’d go with about 5 for you, 1 for her and see how that works out.

  3. Reply
    Arthur R
    January 27, 2011 at 7:03 am

    Those numbers seem unlikely. My best guess is that the W-4 instructions would report that your wife should claim married/0 and you should claim married/4.

    However, I may be missing something

  4. Reply
    Richard M
    January 27, 2011 at 7:47 am

    Go to the W4 Calculator at PayCheckCity, enter your data, and it will compute your withholding allowances:

    http://www.paycheckcity.com/W4/w4instruction.asp?nextPage=PA

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