My wife and I are currently set up as follows on our W-4s:
Wife: Single 0 Me: Single 4
Our refund was "too large" this year and I'd like to decrease our withholdings (increase our allowances). What will happen if we both check married on our W-4? Is that the equivalent of 2 more allowances? Thanks,
Chris
Without knowing each of your income, and total income on your form 1040 for 2006, it's really hard to say. But as a general rule of thumb, I would say that as long as y'all's total income is less than 60,000$ for the year, you can't go wrong claiming M-1 apiece. Just a rule of thumb, mind you. Best to scrutinize a W4 form very closely and work it out. ChEAr$, Harlan Lunsford, EA n LA
Am I missing somthing? By decreasing amount withheld aren't you reducing the excess over taxes (i.e. getting a SMALLER refund)? Isn't that the OP's goal?
I have found that Married - 0 is roughly equivalent to Single - 6. I use this to fine tune the withholding of a married couple where both work or there are two jobs involved. The larger wage earner claims Married - 0 and the other income uses Single and enough exemptions to get close to breaking even. Linda Dorfmont E.A., CFP, CSA
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