My wife and I got a pretty big tax return this year and we were wondering how to adjust our taxes to get a little more back in our checks and just get a small refund back at the end of the year? We are married with 3 kids. One of those kids can only be claimed every other year. We both claim 1, "Married, but
My wife and I got a pretty big tax return this year and we were wondering how to adjust our taxes to get a little more back in our checks and just get a small refund back at the end of the year? We are married with 3 kids. One of those kids can only be claimed every other year. We both claim 1, "Married, but withhold at higher Single rate". So I guess my question is pros and cons to increasing my exemptions from 1 to 2 and leaving "Married, but withhold at higher Single rate" OR leave exemptions as 1 and change from "Married, but withhold at higher Single rate" to just "Married"?
change from withholding at the single rate to start with
and for every additional deductions your can claim that amount to the personal exemption you can claim another allowance ie for 2016 the personal exemption of $4050 would allow a married couple additional 3 allowances
as for the child that can only be claimed every other year, it this child spend the majority nites with you that child can be claimed
you might have some agreement with the other bio parent you don't want to disrupt but this is the rule by IRS which is what is considered on tax returns, not considering court decisions
How big WAS your refund this year, and how much did each of you make? Hard to advise you without knowing that info. Please post again with the added info.
Go to married, and one of you go to 2.
No really good way to advise you without a lot more information, such as how much each of you earn, your children's ages, etc. As a VERY rough estimator, add one withholding allowance for each $600 in refunds that you receive to the W-4 for the spouse with the higher wages.
A better way to proceed would be to use the IRS Withholding Calculator located here https://www.irs.gov/individuals/irs-with… . Have your most recent pay stubs in hand for the most accurate result.
Probably M1 would be best. You can download the tables that IRS uses for withholding rates as part of their Publication 15 or just the IRS 2017 withholding table from IRS.gov website and find your pay period and average salary, and then you can easily see approximately what will be withheld for the different statuses, if you want to fine tune it. At least one of you probably would want to adjust every other year to take into account whether that is a year you get the added dependent deduction
I would suggest trying the withholding calculator at irs.gov for ideas. Either skip including the every other year dependent or remember to tweak each year.