May 6, 2008

Q & A: Adjusting Your W-4 Wihholding Allowances

QUESTION: I am married with two children and I believe on my W-4 filed at work I checked Married, 3. So did my husband. I want to avoid owing too much at the end of the year and would like to get a refund. We were advised to change our allowances on the W-4 from Married, 3 to Married, 1, so we can have more money withheld. So in that case do you also advise to change to Married, 1?

ANSWER: If your intent is to have a refund on your 2008 tax return, then you are making the correct decision. For payroll withholding purposes, the more allowances you claim during the year results in less federal withholding tax withheld. This will result in reducing your tax refund or increasing your tax due on the tax return. Conversely, if you claim less allowances during the year, the result will be a lower amount of tax due or a larger tax refund on your tax return.

1 responses:

Coach G,  May 16, 2008 at 1:26 PM  

IRS has a nice calculator here
http://www.irs.gov/individuals/article/0,,id=96196,00.html

  © Blogger templates The Professional Template by Ourblogtemplates.com 2008

Back to TOP