income question

[bonnie&clyde]

im tired or uncle sam taking all my damn money..would it be better if i claimed one of our kids since i make more than my wife or is it better for her to claim both kids and pray i get some money back at the end of the year??

[CWO]

I may be wrong, but if you're filing as married, does it even matter?

[mstng86]

I may be wrong, but if you're filing as married, does it even matter?

this. You should get a 3500 credit for each.

[bonnie&clyde]

not filing married, we file seperately

[Hmbre97]

Why do you file separately?

[Chili]

I may be wrong, but if you're filing as married, does it even matter?

Just by the way he presented the question, I am assuming that he and his wife file separately. Not sure why though. I mean, I'm by no means a tax expert, but when we have run various scenarios, filing joint typically works out the best.

[YALE]

The withholding amount is the same no matter who claims the kid, but it depends on which of you falls in the higher tax bracket at the gross pay point. You should claim them, if it it will get you into a lower tax bracket and not push your wife up into a higher one. Then, your collective level of taxation will be lower. If you already pay someone to prepare your taxes, you should make the switch to a CPA, and take this question to them. It's worth your time.

[mstng86]

The withholding amount is the same no matter who claims the kid, but it depends on which of you falls in the higher tax bracket at the gross pay point. You should claim them, if it it will get you into a lower tax bracket and not push your wife up into a higher one. Then, your collective level of taxation will be lower. If you already pay someone to prepare your taxes, you should make the switch to a CPA, and take this question to them. It's worth your time.

Yale


What kind of car do you drive?

[Gtracer]

Yale


What kind of car do you drive?

Yale doesn’t own a car, he jumps on his Cow Skin Magic Carpet (rug) and just flies away...


<---Married but files separately as when I filed joint, we lost more money...lol

[YALE]

Yale


What kind of car do you drive?

A 21 speed, at present. One day, a Lambo.

[Juiced4v]

They always sticket to me..last yeah I got lucky and only paid 2k on top of what they took out all year...

[Chuck_Finley]

Does your employer offer any flex spending accounts? You can use those to lower taxable income, that and maybe max out your 401k.

[FastFox]

It's better to owe some money in April than to get your own money back without interest. Fund an Ira for you and your wife. That reduces the gross amount of income that you will be taxed on. If you are self employed, and have no employees, you can also have a Simple IRA that will be based on your income. That amount too reduces your taxes paid. I did it for years.

[YALE]

It's better to owe some money in April than to get your own money back without interest. Fund an Ira for you and your wife. That reduces the gross amount of income that you will be taxed on. If you are self employed, and have no employees, you can also have a Simple IRA that will be based on your income. That amount too reduces your taxes paid. I did it for years.

Definitely fund separate IRA's, and max out yours before you contribute to hers. Any little barrier helps, if you end up getting divorced.

[Roscoe]

Definitely fund separate IRA's, and max out yours before you contribute to hers. Any little barrier helps, if you end up getting divorced.

My new motto for anything moving forward will be "WWYD?"