Best tax advice for W4 - just married?

Question

I recently got married and I am now a stepfather for a 1 year old. Currently on my w4 I was claiming the least amount so I could get back the most on each paycheck. I was wondering...should I change what I claim and what should I change it to to benefit me more on each paycheck now that I am married? My wife doesn't work right now, she goes to school fulltime, so she doesn't need to file. I make around $62,000 a year.

I really just want to make sure I get at least the same or more on each paycheck after I change this. Thanks for the advice. Let me know if you need more information from me.

Answer 1

I am a tax person and Manny your answer is great! Would you like a job?  

Answer 2

Ideally, you should talk with a tax professional. I am not one, nor do I play one on TV. Below is for your federal taxes. Your state has its own rules.

Good news for you. Because your wife does not work, you will be in a lower tax bracket. W/o getting into your business, the child could make things better if your wife claims the kid as a dependent. If the child's father does, then less tax benefit for your family, but still better than it was. You have gone from the heart of the 25% bracket to the top part of the 15% bracket. The info below assumes you are not deducting the child. If that is not the case, you will be in an even better tax position.

You should get some $$ back next year. You could try to figure it out and get it now, but that will take some work. Quick estimate for withholding was 15% for 1/2 your pay and 25% for half which comes out to about $12k

New estimate is 15% for all your pay which is about $9k.

Look at how much you have already withheld--guess about 8k. You only need to withhold about 250/mo for rest of year.

Keep in mind that I know nothing about your deductions for medical, charitable giving etc. that would change the numbers.

Good luck and talk to a tax person.

Answer 3

You could claim 4, one for each of the three people and another one for the child tax credit you'll get, and srill be real safe that you won't have to pay when you file.  You could actually claim even a couple more than that, but 4 would be a good start.

You have it backwards - the MORE you claim on your W-4, the less they take out so the more you get in your paycheck.