How many exemptions should I claim with a wife and three children?

Question

married filing jointly

Answer 1

You can claim 5 for the people, and an additional 2 for each child under 17.  

If your wife doesn't work outside the home, you could claim one more.  

If she does work outside the home, then the 5 plus 2 for each child under 17 should be split between you for your W-4's.

Answer 2

You don't tell us whether you itemize or take standard deduction.  Does your wife also work?

If you take standard and she doesn't work, you should probably claim 3.  If you both work, suggest you fill out the worksheet at the top of the Form W-4.  Otherwise, you and she should both claim 0 if you both make good salaries.

Answer 3

Well during the year you can claim as many or as little exemptions as you like.  What I usually tell my clients (because I work part-time at a tax office), is first of all, go to your payroll department and ask them to figure up the percentage that should be taken out in regards to your salary.

Then I tell my clients that IF they can do so, claim 0 exemptions from January-September.  Allow the government to tax you.  Then at the end of September, go to your payroll department and do another W-4 Form and claim 6, 7, 8 exemptions because the government has already taken it's money in the earlier months.

This will ensure you have all of your check (except for your basic taxes like social security and 401K) during the holiday months.

Good Luck!