Tax claim question

[IronSnake]

I hate this kind of stuff, since it's always up and down. But I think I goofed, wife and I file jointly. I claimed 2, she claimed 2. Pretty sure she should be claiming 0 and me 2 (I earn the most). Having her adjust to 0. Hopefully that saves my ass for this year and we don't end up owing at tax season.

Is that normally correct? Or how do you brosefs do it?

 

[13COBRA]

I have us both claim 0, but it's a slightly different circumstance I imagine.

 

[MDShelby]

Normally claiming zero takes the most tax out over the year and keeps from a large tax bill April 15. But there may be other things at play that can affect you r overall tax liability. My .02 cents.

 

[cidsamuth]

When you "claim" dependents, that normally refers to the actual tax returns. I assume you are talking about how many dependents you use on your W4 for tax withholding each paycheck.

Based on what you wrote, when you guys file jointly at the end of the year, you MIGHT end up owing since you have essentially had withholding done as if you have 4 dependents while you will have only 2 dependents on your tax return.

But, it might not matter depending on how many other deductions and/or credits you have. Each person is different.

I actually have withholding done as if I have more dependents also . . . because I have done pretax calculating to determine my approximate tax obligation for the year based on my income and deductions.

The goal should be to get a very, very small return. You don't want to owe and possibly be hit with penalties and interest. But, people who brag about big tax returns are stupid; they are essentially giving the Government interest free money all year.

 

[01yellercobra]

I can't figure this out either. I claim 0 and my wife claims 2. I usually do our taxes through Turbo Tax and when I do her part of it we end up in the green. Then we do my part of it and we end up owing. Which I just don't understand since she made about 30k/yr more than me. When I added it up it was saying that I should be paying the same amount of taxes as her.

 

[cidsamuth]

Likely, your joint income has thrown you up into a higher tax bracket -- especially if you have already assumed all deductions (like mortgage interest) FOR BOTH OF YOU when you had only her income input, then put your income on top that with no other deductions.

 

[IronSnake]

Well to be safe since we are halfway through the year, I had her back hers out to 0, and backed mine down 1 to potentially compensate.

At least it's money we will get back, so I will shoot for safer bets rather than fouling up and owing

 

[08mojo]

Wife and I both claim 0 deductions...and also elect to pay more towards taxes each paycheck. with this, we still owe a decent amount come tax time. We've upped our contributions to reduce our taxable income this year, so hopefully we won't owe too much for 2019.

 

[flash0080]

I think they changed the withholding calculator to be more accurate.

IRS Withholding Calculator | Internal Revenue Service

 

[nxhappy]

usually they recommend 1 "point" for each child or dependent. If no kids, you should be claiming 0.

 

[IronSnake]

I think they changed the withholding calculator to be more accurate.

IRS Withholding Calculator | Internal Revenue Service

Interestingly enough, I was told I should claim 2 and her 4.

Seems a bit "aggressive" lol

 

[earico]

The issue is they figure out how much to take out based on the incomes individually. Then you joint file and combined the tax bracket is much higher. This is more of an issue when you both make about the same. I'd claim married and 0 on both incomes. Just to be safe. It's never fun owing.

 

[IronSnake]

The issue is they figure out how much to take out based on the incomes individually. Then you joint file and combined the tax bracket is much higher. This is more of an issue when you both make about the same. I'd claim married and 0 on both incomes. Just to be safe. It's never fun owing.

Yea, I agree. It's a bit perplexing.

The actual website he posted asked me all of that, and also what sort of tax i've paid so far. Which I've put in. I think based on our individual incomes, we are doing about what needs to be done. But as you said, that income then gets combined, and our tax rate lowers which then ends up being less.

No wonder why CPA's and tax people make good money. Sheesh

 

[BrunotheBoxer]

Why would you willingly pay taxes?

 

[IronSnake]

Why would you willingly pay taxes?

If you know how I can not pay taxes without going to jail, let me know.

 

[BlckBox04]

If you know how I can not pay taxes without going to jail, let me know.

Same here

 

[ViciousJay]

Get on your knees and pray they don't catch you, otherwise go to HR and both you and the wife change the dependencies, to 0, and 1. If and when she gets prego the person with the bigger income should be able to claim the "1"

 

[BrunotheBoxer]

If you know how I can not pay taxes without going to jail, let me know.

Why would I tell you my tricks to not paying taxes for free?

 

[me32]

Why would I tell you my tricks to not paying taxes for free?

So your saying paying you $1 and you will share your secrets