married single income, 0 W4 allowances.

[asp31]

Hi folks,

For a married couple with a single income, I would like to know what is the difference when we

1. W4 is being filled as single.
   
2. W4 is being filled as Married, with 0 allowances.

Do both (1) and (2) withhold the same amount from the paycheck? or (2) by default, results in less amount being withheld (even with 0 allowances) ? Is there any tool that I can use to give me approximate calculations ? please let me know.

From the W4 worksheet, Married with single income looks like max allowances possible is 3, with 2 being a safer choice with a possibility of a refund.


Thanks.

 

[eyoungren]

We file as tax exempt, with the minimum for state tax we can.

We pay the tax at the end of the year when we file with the correct allowances. This gives us our full paychecks during the year (minus FICA and state tax).

However, due to student loan interest, and child credits we always end up with a refund.

The IRS doesn't care what you put on the W4 as long as you use the correct allowances when you actually file.

 

[samiwas]

Using a paycheck calculator, the difference on a $2,500 paycheck is about $135.
[doublepost=1491152755][/doublepost]

We pay the tax at the end of the year when we file with the correct allowances.

However, due to student loan interest, and child credits we always end up with a refund.

Wait, so do you pay taxes at the end of the year, or do you get a refund? You say you don't pay anything during the year.

 

[eyoungren]

Wait, so do you pay taxes at the end of the year, or do you get a refund? You say you don't pay anything during the year.

Nothing is taken out of our paychecks except state tax because we declare tax exempt.

But we claim the correct exemptions when we file our taxes.

Student loan interest declared on our tax form zeros the tax we owe for the year and child credits give us a refund.

 

[willmtaylor]

Why are you asking MacRumors? There are so many better places to ask this.

 

[samiwas]

Nothing is taken out of our paychecks except state tax because we declare tax exempt.

But we claim the correct exemptions when we file our taxes.

Student loan interest declared on our tax form zeros the tax we owe for the year and child credits give us a refund.

So, essentially, you make money off of taxes each year...nice (even though you have to spend to get it that way). Much better than my situation.

 

[eyoungren]

So, essentially, you make money off of taxes each year...nice (even though you have to spend to get it that way). Much better than my situation.

Well…we're carrying student loan debt so technically, not so great. But yeah.

Without the student loan interest deduction we'd be in for one big tax payment every year.