How many exemptions should my husband claim if I am self-employed?

Question

My hasband file a joint return and I have 3 children. He makes about $27,000/year at his job and I make about $10,000/year running a home daycare (self-employed). We do not have any benefits through his employer at this time (no life insurance, medical, etc.) and we do not pay for childcare, but all 3 of our children are qualified for the child tax credit. Does anyone know approximately how many exemptions he should claim? I'm just leary because I am self-employed and pay all of my taxes at the end of the year (deducted from our refund) and I do not want to end up in a situation where we owe.

Answer 1

He could  claim as many as 10 if you were making quarterly payments, but that wouldn't leave much to pay your taxes from the refund.  So he's better off claiming no more than 4.

Answer 2

http://www.irs.gov/individuals/article/0... and http://www.irs.gov/pub/irs-pdf/p919.pdf.

Answer 3

visit IRS website and use the Withholding Calculator.