Damsel in distress: Help with my annual tax?

Question

I am employed by two employers, getting a paycheck from each company once a month. Each paycheck is gross $1,200. I am single with 3 exemptions, so according to the IRS's Circulation E my federal deduction is $12 per paycheck. The way it pans out I end up getting paid the same gross amount on the 1st and the 15th. If I look under the bi-weekly deduction requirements on Circulation E my tax would be $91 per paycheck.

So each company would report that they paid me $14,400.00, while I would report my annual earnings at $28,800.00. Which is my correct deduction: $12 x 24 = $288.00, or $91 x 24 = $2,184.00?

Thanks!!!

Answer 1

When you say three exemptions, are you saying yourself and two dependent kids?  How old are they?  And do you qualify to file as head of household?

If you have two dependent kids under age 17, you shouldn't owe any tax so it doesn't matter what you put, you'll get it all back, plus something for EIC.  If the extra exemptions are not your dependent kids, then the way you have it set up you are going to owe.

Without knowing who those exemptions are, can't really tell you for sure.  But you don't put the number of allowances that you are entitled to on multiple W-4's, the number you are entitled to is the TOTAL.

Answer 2

Sweetie, if you have 2 jobs, you don't put the same number of allowances on both W-4s.  If you are allowed 4 allowances, you put 2 on each job.  The allowances on the W-4 form include your standard deduction (which you only get once when you go to file) and your dependents (who you only get once).  

Each employer knows only about that one job.  They go by the W-4 you filled out.  If that employer pays you monthly, they look at the monthly chart.  So using your math, it's $288.

The problem isn't so much the withholding as when you do your tax return.  You might find that you OWE.