Hi everyone!

So, as many of you have already read, my husband Aidan (aidan80) got a job! Whooohoooo!

Anyway, when I started working at my current job back in February, I filled out my W-4, and I believe I claimed 2 because I was married but my spouse was not working (we needed all the money we could get). Or maybe I claimed 1. I think it was 1. Ah, I'm not sure...I'm waiting for my Human Resources lady to call me back.

Anyway, now that's Aidan's working, I need to fix my W-4 form quick because I definitely don't ever want to "owe" taxes! Aidan has to fill out his W-4, too. We already know that we need to claim zero, but I believe we also need to have an additional amount withheld from our paychecks to avoid having to pay taxes at the end of the year. But I've also heard that only one spouse needs to have the additional amount withheld, which would be me. Anyone have any info about this?

The instructions say "Divide line 8 by the number of pay periods remaining in 2006. Blah blah blah, enter the result blah blah, This is the additional amount to be withheld from each paycheck." WHAT?! That doesn't make sense because Aidan has not been working a full tax year! Why do they want almost $200 dollars withheld out of each of my next 6 paychecks?! OMG! Am I totally not doing something right?? And if Aidan has to do this as well, then we'll be making about the same as we were when only I was working! I'm so confused! How on earth are we ever supposed to save money now?

I figured I'd ask you guys because most of you have gone through the same situation. So what do we do...claim zero and then have the additional amount withheld from only my paycheck? Or are we supposed to claim zero and have the additional amounts taken from both of our paychecks? Any advice?

Thanks so much in advance.

I'm no tax expert here, but I believe the amount of tax you need to pay will highly depend on how much you make that year. Hubby and I claim married, 0 but as last year I made more than the year before that, we got less return and even had to pay the state tax. Two years ago, we also claim married 0 but since I only worked for 2 months, we got bunch of return.

Yep, I believe you're correct. The more you make, the more you pay! Which is why, I believe, when two spouses are both working, you might need to have an additional amount withheld (from one or both paychecks) to avoid having to pay taxes at the end of the year. I'm just not sure why I have to fill out the form as if my husband has been working an entire year, when he just started Monday.

Melissa - see my PM to you.

Thanks Rebecca. I sent you a reply.

jelti,

This withholding informtion is not on your pay statements?

Estimate what your 2006 incomes will be by the end of the year. Fill out a 1040 on that basis to get an estimate of how much tax you will owe. Subtract how much tax has been withheld to date. Select your withholding exemptions, and additional withholding amount as may be necessary, to have the necessary amount withheld over the course of the remaining paychecks in the year. This is elementary school 4-funtion math - addition, subtraction, multiplication, and division - although a bit of basic junior high algebra might be useful.

Yodrak

Yodrak,

I do appreciate the help, but could definitely do without the belittlement. Knowledge of basic math doesn't always help when one's brain can't read past the fine print. We shouldn't need outside help to decipher these instructions, and your instructions are different than what is on the W-4. You seem to assume that those with any elementary education should know what they are doing, and those who seek assistance lack brain matter. It's not all black and white. Maybe you should try seeing in colour sometime.

Peace.

jelti,

My instructions are different for a reason. I agree with you that perhaps we shouldn't need help to decipher government instructions, but we are surrounded by examples clearly indicating otherwise.

Let me try again.
- you and hubby know how much income you've received and how much tax you've had withheld year to date, and how much per pay period. It's information that should be on your most recent pay statements.
- you know how many more pay periods are remaining this year, so you can estimate total pay and total tax withheld for the year if you do nothing.
- download a Form 1040 from the IRS web site and fill it out with the information you have available to estimate what your tax obligation will be.
- if your estimated tax obligation is more than your estimated withholding, divide the difference by the number of pay periods remaining in the year.
- adjust the number of exemptions, and additional withholding if necessary, on a new W-4 so as to increase your withholding amount by the necessary amount for the rest of the year.

Yodrak

Yodrak,

I understood your instructions the first time. I believe you may have missed the point of my response.

Regardless, thank you for the information.

Peace.