Just married, how file W-4???

Question

I just got married and want to know how to change my W-4 in California. I make $83,000 a year and my wife doesnt make much as she works in restaurant industry and only claims around $30,000 a year.

Ive been reading about the number of exemptions and dont really understand that. Any suggestions on how we should file? Right now I changed it to Married and 0 on both state and federal. If I change it to married 1, what would that do or should I do that?

Any advise is appreciated. Thank you.

Answer 1

First advice - your wife should claim ALL of her income, or somewhere down the line she's likely to be in trouble - as will you if you file joint returns.  From the way you word your question, I assume you are saying that she doesn't claim all of her tips.  The IRS is well aware of the number of people cheating on their taxes by not claiming all of their tips, and does more and more auditing in that area.

That aside, I'd leave it the way you have it, at married/zero.   Claiming married/one would give you a little more,, maybe $15 a week, in your paycheck but could cause you to owe at the end of the year.  

Answer 2

Take your 2007 tax returns.  Pretend you were married and see what the difference in tax is.

then use www.paycheckcity.com to fine tune.