Tax guys... Allowances, exemptions for W4... going back to being an employee (1 Viewer)

[El Floppo]

Hi tax friends...

I've been an independent contractor for a long time, but going back to work as an employee on Monday and haven't received a w2 in ages, so could use advice setting it up.

I'm married with two kids (8 & 12). I'd like to be able to maximize my take-home without ending up paying taxes out of pocket at the end of the year.

How do I figure out that sweet spot for allowances and exemptions that allows this?

Fwiw, the wife (who is more savvy to this than I am) thinks it should be filed "married" with 8 or 9 allowances. Our accountant says to show "single" with 2 allowances.

Thanks.

 

[El Floppo]

"Married" typically is for single-income couples: ie, husband works, wife doesn't, only one income but gets filed jointly at tax time. If you both have jobs, you likely want to file "single" or "married but withhold at the higher single rate".

She works, but it's negligible

 

[Dan Lambskin]

Hi tax friends...

I've been an independent contractor for a long time, but going back to work as an employee on Monday and haven't received a w2 in ages, so could use advice setting it up.

I'm married with two kids (8 & 12). I'd like to be able to maximize my take-home without ending up paying taxes out of pocket at the end of the year.

How do I figure out that sweet spot for allowances and exemptions that allows this?

Fwiw, the wife (who is more savvy to this than I am) thinks it should be filed "married" with 8 or 9 allowances. Our accountant says to show "single" with 2 allowances.

Thanks.

I’m married with 3 kids and I think i claim 6 and still get a decent tax return (think I got like 4K Last year)

worksheet said I should claim 9 I think which would put me closer to 0 refund

YMMV being in NY and all

There are some other interactive calculators you can play around with too

https://www.irs.gov/individuals/tax-withholding-estimator

probably others if you google it

 

[El Floppo]

I’m married with 3 kids and I think i claim 6 and still get a decent tax return (think I got like 4K Last year)

worksheet said I should claim 9 I think which would put me closer to 0 refund

YMMV being in NY and all

There are some other interactive calculators you can play around with too

https://www.irs.gov/individuals/tax-withholding-estimator

probably others if you google it

thanks, gb.

I've googled and done some, but my mileage has varied depending on who or what I've asked. looking for more like what you've answered. worksheet said 9 for us too.

I'm actually looking to find that sweet spot where my take home is maximized AND I don't get any refund or have to pay additional taxes.

(for others, fwiw- the wife is an independent contractor on 1099... if that matters).

 

[Dan Lambskin]

thanks, gb.

I've googled and done some, but my mileage has varied depending on who or what I've asked. looking for more like what you've answered. worksheet said 9 for us too.

I'm actually looking to find that sweet spot where my take home is maximized AND I don't get any refund or have to pay additional taxes.

(for others, fwiw- the wife is an independent contractor on 1099... if that matters).

You can probably get a better idea after your first check or two once you see actual withholdings

 

[El Floppo]

You can probably get a better idea after your first check or two once you see actual withholdings

thanks- that's what I planned on doing. 

 

[The Z Machine]

Congrats, question mark?

 

[El Floppo]

Congrats, question mark?

exactly so.

good opportunity, I think, and I couldn't turn it down. but kinda dreading being beholden to the Man again... especially this one.