Post # 1
Please help LOL! I make $41,300.00 a year and my wife makes around $21,000.00 to $22,000.00 a year. I can pick between “Single or Married but withhold at a higher single rate.” or “Married.” I don’t know what to pick. Please help. I have had “Single or Married but withhold at a higher single rate.” for the last 7 years but was told recently that it was wrong. Is it? thank you
Post # 3
@asjdwf: It depends on two things:
- How important is it to you that you get a refund?
- How adverse topossibly owing are you?
If you for sure want a refund choose withhold at a higher rate, if you are aiming to break even (orpossibly owe some) chOose married.
Post # 4
I believe you HAVE to file jointly if you are married except for business purposes etc so you should probably put Married.
Post # 5
@MsJ2theZ: I think he’s asking about his form w-4 withholding.
Also you can file married filing separately for any reason.
Post # 6
So what is the benefit of changing it to married if any? Is there any bad outcome of changing it?
Post # 7
@MsJ2theZ: Filing jointly is optional. Whether or not it is advantageous to file jointly or separately is situational.
@asjdwf: The IRS has a calculator for this. Search IRS withholding calculator. It will help you do projections.The bebenefits depend on your situation. This site will help you.
Post # 8
Hi @asjdwf: I see this is your DEBUT Post on WBee… so a BIG Welcome to “the Hive”
WHERE do you live ?
That will probably make a HUGE difference… as for example, the Tax Laws / Implications in the USA & Canada (and we assume around the world) are going to be quite different.
Post # 9
@asjdwf: If you live in the US and you change your withholding from single to married your amount withholded will go down and therefore your take home pay will go up.
The only downside will be that your refund will go down (since you have less withholding) and you could possibly end up owing. But unless you have other income producing activies that amount should be pretty negligible.
The amount of tax you pay is always going to be the same. You are just making adjustments to how much you pay in during the year.
Post # 10
i asked my accountant if i should change and she told me to keep it at “single or married withhold at higher”
i won’t know if we are going to file jointly or separately until we file our taxes and they run the numbers.
Post # 11
Mine’s at married but withhold at a higher rate.
Post # 12
@asjdwf: I’d talk with an accountant personally. They’ll best be able to advise you and your particular situation.
Post # 13
@asjdwf: If you’ve had Married but Withhold at higher single rate or Single for seven years, how did you fare on your taxes those seven years? You can put whatever you want on your W4 if you are married, but you have to file as MFJ or MFS come tax time.
I am assuming that you filed taxes in the years that you were married. Did you get a refund or did you owe? Or did you break even? If you got a refund or broke even, then keep your status as is (married but w/hold at higher single rate or single). You shouldn’t owe by putting your current status on your W4 unless you have side income that hasn’t had the proper amounts withheld.
I hope this helps, but honestly, a Wedding board may not be the best source to go to for this stuff. 🙂