Original MDTAXES Forum

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Oct 2, 2007 - 6:44AM

W-4 form and newlywed

I am finding the W-4 form somewhat confusing being a newlywed (Sept 15). Both my spouse and I work (no kids). She is in the 25% bracket and I am in the 33% bracket. Should I claim a 2 for personal allowances and she a 1? Also should I complete the two-earners/multiple jobs worksheet and have additional tax withheld? Should she too?

Zip Code: 19010

Andrew Schwartz, CPA

Oct 2, 2007 - 7:01AM

Re: W-4 form and newlywed

Believe it or not, you can find a great tool on the IRS' website. We put the link on this month's newsletter.

Check out: http://www.irs.gov/individuals/article/0,,id=96196,00.html.

With respect to the W-4 form, it seems easy enough to complete, but generally gives the incorrect answer. Depending on your deductions, I might recommend that your wife claim Single - 1, and you claim Married - 0.

You can sign up to get our monthly newsletter via e-mail at www.mdtaxes.com.

Zip Code: 01801

Walter

Oct 3, 2007 - 5:44AM

Re: Re: W-4 form and newlywed

Thanks for the response. I agree the IRS calculator is decent but our situation is somewhat complicated as she changed jobs in July (residency to fellowship) and moved from MD to PA. I'm not quite sure if our itemized deductions will be more than the standard (probably not as we no longer own a home).

As for claiming 0 for myself and 1 for her as you suggest, are you referring to total number of allowances (ie. line 5 on the W-4 form)? I'm assuming yes.

Thanks,
Walter

Zip Code: 19010

Andrew Schwartz CPA

Oct 3, 2007 - 1:39PM

Re: Re: Re: W-4 form and newlywed

I didn't realize you went from your training to your first full paying position. That may allow you to have a little less taxes withheld from your new job, since your new employer is going to withhold taxes from your salary as if you will earn that kind of money all year instead of just for the remaining part of the year.

Even so, to be safe, here is my generic advice for married couples who do not own a home and have a large disparity in earnings.

On the W-4 form, your wife should check "Married but withhold at the higher single rate" in box 3, and should put 1 allowance in box 5. You should check Married in box 3, and put 0 allowances in box 5.

Then you should either work through a tax projection by plugging this year's projected income, withholdings, and deductions into TurboTax, or you should set up a time to meet with a CPA to work through this calculation.

Zip Code: 01801