Need W4 Withholding Advice

[llckll]

Hi All,

Since it's tax season, I was also looking over our W4 withholding allowances and researching if we should adjust it.

I am married with one child, and another baby due in September.

My current W4 is set as: Married with 2 allowances

My wife's W4 is set as: Married with 1 allowance

What would be the ideal withholdings so that we won't have to pay Uncle Sam because we didn't have enough taxes withheld but that we'll get to keep most of our paycheck and even get a small refund closest to $0.00?

Should we set both W4's to Married with 3 allowances or would we end up owing cause we didn't have enough taxes withheld?

With out current withholdings stated above, we'll be receiving approximately $1,400 from Uncle Sam.

Thanks in advance.

[Like2Plan]

Hi All,

Since it's tax season, I was also looking over our W4 withholding allowances and researching if we should adjust it.

I am married with one child, and another baby due in September.

My current W4 is set as: Married with 2 allowances

My wife's W4 is set as: Married with 1 allowance

What would be the ideal withholdings so that we won't have to pay Uncle Sam because we didn't have enough taxes withheld but that we'll get to keep most of our paycheck and even get a small refund closest to $0.00?

Should we set both W4's to Married with 3 allowances or would we end up owing cause we didn't have enough taxes withheld?

With out current withholdings stated above, we'll be receiving approximately $1,400 from Uncle Sam.

Thanks in advance.

There are so many variables, it is best to go to the IRS web site and use the IRS Withholding Calculator: Link to The IRS Withholding Calculator

It is a good idea to review mid-year to make sure you are still on track, too.

[MonkeyMama]

Not enough info to say.

I presume you have not factored the $1k tax credit on second child (& that you are eligible). In that case, you can probably add 2-4 allowances (depends on your tax bracket).

I'd just add two allowances (to either/or) and see what it does to that paycheck. You can also play with the numbers at paycheckcity.com. You can see how much different allowances will change your paycheck. With the extra child tax credit, you probably want to withhold $200 less per month. (to eliminate $1400 refund + factoring $1,000 tax credit). This is a little conservative as you will also get a few hundred dollars back for second child exemption.

[llckll]

Thanks. Here are my numbers for 2013:

Hubby: w2 = box 1 (90944.67) | box 3 & 5 (97074.97) | box 15 (NJ) | box 16 (91196.87)
Wifey: w2 = box 1 (44293.45) | box 3 & 5 (48969.15) | box 15 (NJ) | box 16 (49962.25)

1098e = 4000.00

Mortgage interest = 13,000.00

Will start sending my toddler to day care starting in September which will cost approximately $850.00/month.

I will also try the various calculators myself.

[feh]

Another option is to simply have extra money withheld from each paycheck. This is very feasible if your income/deductions don't change much from year to year.

That may be more straight forward than trying to figure out how allowances will affect things.

[llckll]

Another option is to simply have extra money withheld from each paycheck. This is very feasible if your income/deductions don't change much from year to year.

That may be more straight forward than trying to figure out how allowances will affect things.

That is a viable option but I'm trying to keep as much as my paycheck as I can without owing at the end of the year.

I think keeping my W4 to M2 and updating my wife's from M1 to M2 should bring it as close as I can without danger.

[feh]

That is a viable option but I'm trying to keep as much as my paycheck as I can without owing at the end of the year.

Yes, indeed. Sorry for the confusion - I was thinking about the situation where one owes money in April, instead of getting a refund.