How many to claim on w2?

Question

i was wonder i am married and have 3 children and one due in nov. and i know claim 2 and they take alot i like alot back at the end of the year but is there any way to have less taken out and get more back at the end of the year. thanks

Answer 1

You do not claim anything on a W-2.  That form is the Wage and Tax Certificate your employer gives you at the end of the year.

Answer 2

How large of a tax refund do you normally get? Does your wife work also?  Generally each increase of 1 allowance on your W-4 means $500 less tax is withheld per year.  If you get $3000 back each year, increasing your W-4 by 4 with withhold $2000 less federal tax per calendar year.   With 4 children soon, you can safely increase your W-4 to 6 or more (1 for you, 1 for your wife, plus 2 for each child) if your wife does not work.  If she does work, then split the 6 between you.  We need more info (salary level, does your wife work, last year's refund) to be more clear for you.

Answer 3

Depending on how much you make, you may be eligible for Earned Income Credit (EIC) which can give you back significantly more than you paid for the year. Because you are married with kids, you and your wife can earned a combined $36,000 (? exact limit) and still receive EIC. The credit is maximized at around $25,000 - $30,000, and then declines from there.

In theory, if you claim married with 6 exemptions, your withholdings should approximately equal your tax liability for the year. If you claim fewer exemptions, they you will get a bigger refund, but you could be penalized if your refund is more than a certain amount (or percentage) above your tax liability.

Answer 4

Visit IRS website (www.irs.gov   type in withholding calculator in the keyword search)and use the withholding Calculator:

Tips For Using This Program

Have your most recent pay stubs handy.

Have your most recent income tax return handy.

Fill in all information that applies to your situation.

Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.

Consult the information links embedded in the program whenever you have a question.

Print out the final screen that summarizes your input and the results, then use it to complete a new Form W-4 (if necessary), and keep it for your records.

Answer 5

W-4 is the form you would be filling out.  You can claim 6 (yourself, spouse, 4 children) for 2008.  You can change this at any time.  This will reduce the amounts withheld from your paycheck, HOWEVER, you cannot expect to get more back in a tax refund.  It could lower your tax refund or zero it out altogether.  In some cases it might even result in you owing.

Have the Payroll people look it up for you.

Answer 6

You mean your W-4.

Married, 4 kids by the end of the year, you can claim 6, plus usually one or two additional for each of the kids under age 17 as of the end of 2008 so you'll get the child tax credit for them.  If your spouse works, this is the total number that should be split between you.

You might want to claim one or two less than what the above calculation gives you, just to be safe.