W4 and State tax : (paycheck, pay, claim, Arizona)

[shaikh1234]

Hello Experts,

I want suggestion on filling of State tax and W4 form.

Regarding W4 form, My family (Wife and kid) is in India and they will be joining me in next 2-3 months. Can you Please suggest me what should be the count on my W4?

In Arizona. State tax slab is different for single and family. So As family is coming soon, should I enter details considering family or as a single?

Help in this regard is highly appreciated.

Regards
Shaikh

[myrc60]

If you claim 0, the maximum withholding is taken from your paycheck and the amount withheld will decrease for every +1 you add. I don't know what your tax situation is going to be so I'd be inclined to claim the 0 until you know.

[fishbrains]

Generally speaking, you are taxed on your family status as of the last day of the year. So if you have a wife and child(dren) on December 31, then you can fill out your deductions as of now.

BUT, and this is important, you may be only able to take the deduction for that part of the year that they resided in the state.

Confused yet?

Let's say you are married on 12/31. You can file your returns at the married rate. But since your spouse has only been in the state/country for six months, you only get 1/2 of the married deduction.

Ultimately, what you claim for deductions now will affect your take home, but it won't affect the total amount of tax you owe. Another example:

If your tax liability at the end of the year is $5000, you will need to pay it all at once if you had nothing withheld. But if you withheld $4800 over the course of the year, you will only need to pay $200. If you withheld $5300 over the course if the year, you get a refund of $300. No matter what happens, you owe $5000, the only difference is how/when that gets paid.