Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My wife and I were married last May. 2007 was the first year we filed jointly, however we never changed our deduction status from when we were first married. We've both claimed '0' and each have received a respectable return. This spring we plan on buying a house and I'd like to change our deduction status to allow more in our paycheck to cover our monthly. Last year I had nearly 20% taken out in fed witholdings and received a return. Nearly 5% in state and I still owed. Since I earn 30% more than my wife our tax preparer recommended we set up our deduction status as.
Me Fed:"1"
State:"0"
My wife: Fed- "0"
State- "0"
I don't want to end up in a hole next Spring owing tons.
By Fall our mother in law will be living with us as well. She is disabled and she will be contributing some living expenses toward our mortgage. She encouraged us to use her as a dependent. How will that affect her taxes? She earns about $2200 per month between SS#, pension and interest off her IRA.
I would recommend increasing your 401(k) contributions before changing your tax status.
This way, you get to keep the money your put in your retirement plan and then you are taxed on the portion of your income remaining AFTER your 401(k) contribution.
I would recommend increasing your 401(k) contributions before changing your tax status.
This way, you get to keep the money your put in your retirement plan and then you are taxed on the portion of your income remaining AFTER your 401(k) contribution.
Actually I'm looking to decrease that a little as well... just for the first year of my mortgage. I'malready contibuting 10% of my gross. My company matches 100% up to 8%.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
