New job taxes plus getting married

Question

I going to be starting a new job in a couple weeks, I am also going to be gettign married in 4 weeks. Should I fill out the tax paperwork as single or married? My wife wont be working, should I claim her as my dependent? And should I set my taxes to 1,2, or 3 if I'm married?

Answer 1

You could file the W-4 as married, since you'll be filing your tax return as married.  A spouse is NOT a dependent, but if she isn't working, yes you can claim an allowance for her on your W-4.  If you claim 2 you'll still get a refund - claim 3 and you'll be pretty close to even one way or the other.

Answer 2

Your taxing status is based on what your circumstances are as of 12/31/2008.  When filling out the W-4 you could file as married with two dependents, ie you and you wife.  This will get you the lowest taxes withheld from your pay check.  However it could also cause you to not pay enough taxes to cover the amount of tax you would owe at the end of the year.  This would mean that you and your wife would have to come up with and pay the difference.  If you are good at saving money and planning this would not be unacceptable.  However, most people, until they have established a savings pattern, are not ready for the possible tax bite at the deadline of 4/15.  

Filling out the W-4 as married but requesting to have the withholding based on the single rate, is also an option.  This will hold out a slightly higher rate but would probably cover your taxes payable for the year.

Better yet sit down with a tax professional and discuss each case senario that you are interested in exploring.  S/he should be able to tell you what to expect.  Weather, your projected duductible expenses will be greater than the standard deduction, or if you have outside income that needs to be accounted for and what the taxability is for it.

Good luck

Answer 3

It's too hard to tell.

Use 1040ES to  estimate income and tax.

Use www.paycheckcity.com to fine tune your withholding.