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New job, newly married, W-4 advice needed

T

trmiv

Lifer
I just started a new job yesterday and I'm trying to fill out a W-4. I haven't done one yet being married, so I'm not sure what to do. My wife works as well, but makes about 15% less than me. Do most people in this situation pick the "Married, but withhold at the higher single rate" option, and claim 0 exemptions? I realize there is a worksheet for this, but I wanted to get some real advice from people that have actually done this.
 
That's what my tax person said my wife and I should do to get a return next year as opposed to paying like we have been doing the past 2 years.

 
I'd like to maximize what I get in my checks, and get a minimum return. So if I get like $10 back, fine with me. I just don't want to have to pay.
 
I did this back in December. I think what you wrote intially is what I did. I get a whopping extra $130 per paycheck.

Don't forget to change this for both federal and state.
 
Originally posted by: trmiv
This is a W-4 for a new job, doesn't that take care of both state and federal?
Click to expand...
It didn't for me. I had to submit a separate state form (NY). Delayed me a month too.
 
The best way is to figure out (as accurrately as possible) how much you two will make. Then figure out how much you will itemize. You should have a repayment schedule for your mortgage that shows exactly how much interest you will pay. You should also know your taxes. Don't forget state income tax (or sales tax for this year only). Any medical expenses over 7.5% of your income. If this is more than your standard deduction ($10k married - Joint), then you have your itemized deductions. There is a further deduction of $3100 per person.

Then calculate your taxes: 10% of the first 14600, 15% of the next 44800, 25% of the next 60550. If you need higher brackets and can't figure this out for yourself, you need a tax consultant. You would then know what your annual tax liability is which you can look up in the withholding tables to find out how much you should claim.

Alternatively, you can use the IRS Withholding Calculator to figure it out for you. I have had limited success with this tool, as my wife's employer withholds far too little based on the information given.
 
I didn't change mine when getting married. Wife changed hers. When we owed money at tax time, she bitched at me. I pointed out that I paid a much higher percentage of my income to taxes than she did. She then changed hers back and all is well again. We wont owe this year and will get a little back.
 
I still have mine the same as when I started (single w/ 0 dep). Not exactly sure what she changed hers to (I bet it was Married w/ Higher Single deductions). I can't say for sure how much I would have gotten back this year for sure. Problem is I won $12K and had to pay taxes on that. When I finally go through my taxes for my final review, I'll probably figure it up without my extra money and see what the refund would have been. Seems like it would have been around $1K if I'm thinking correctly. So, obviously we can adjust a bit and be closer to even, but anything $1K or less is fine by me. Maybe put the lower income on single, and the higher income at married. That would probably even it out a bit more.
 
I think my wife is doing married with higher single rate, and 1 exemption. I think I might just do that as well.

EDIT: Wife just checked her's. She's at just married, with 1. Not at the higher single rate.
 
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