Question about withholding on W-4 (pay, taxes, income, dependents)
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I currently claim 2 allowances on the W-4 form since I file as single and have no dependents. I am pregnant and due in March. I filled out the W-4 as if the baby was already here and I would have 5 allowances. I will file as head of household. My income will be roughly $70K next year. My question is, can I change my W-4 allowances to 5 on the first paycheck in 2014? I mean I know I can, but does it make sense? I will have 6 pay periods in 2014 before the baby comes and it seems to me that they can already start taking out less taxes since the birth date of the child has nothing to do with how much taxes I will owe. ie, it doesn't make a difference if the child is born on Jan 1st 2014 or Dec 31 2014, you still claim the child for the whole year. Hope this makes some sense.
I currently claim 2 allowances on the W-4 form since I file as single and have no dependents. I am pregnant and due in March. I filled out the W-4 as if the baby was already here and I would have 5 allowances. I will file as head of household. My income will be roughly $70K next year. My question is, can I change my W-4 allowances to 5 on the first paycheck in 2014? I mean I know I can, but does it make sense? I will have 6 pay periods in 2014 before the baby comes and it seems to me that they can already start taking out less taxes since the birth date of the child has nothing to do with how much taxes I will owe. ie, it doesn't make a difference if the child is born on Jan 1st 2014 or Dec 31 2014, you still claim the child for the whole year. Hope this makes some sense.
While there isn't enough information to confirm the NUMBER of exemptions applicable to you, you are correct that when the baby is born makes no difference - the filing status is annualized. So if you prefer to lower your withholding right away, there is no reason not to.
Oh, and congratulations on the upcoming blessed event! Hope all goes smoothly.
While there isn't enough information to confirm the NUMBER of exemptions applicable to you, you are correct that when the baby is born makes no difference - the filing status is annualized. So if you prefer to lower your withholding right away, there is no reason not to.
Oh, and congratulations on the upcoming blessed event! Hope all goes smoothly.
Thank you!! I don't need a confirmation of how many allowances to claim, I've done all the research and the math on that. It just occurred to me this morning that I should probably change the with holding now and no reason to wait until March. I calculate my taxes on a quarterly basis and prepay the IRS if I'm short so I come out pretty much even in April.
Are you aware that the IRS has an on-line calculator for withholding ?? By inputting your specific payroll info, etc it will tell you if you need to adjust your W-4 as needed to achieve a desired outcome come April. It even will print the new W-4 with new info as appropriate. Even if you think you are on track, it will confirm that for you.
I currently claim 2 allowances on the W-4 form since I file as single and have no dependents. I am pregnant and due in March. I filled out the W-4 as if the baby was already here and I would have 5 allowances. I will file as head of household. My income will be roughly $70K next year. My question is, can I change my W-4 allowances to 5 on the first paycheck in 2014? I mean I know I can, but does it make sense? I will have 6 pay periods in 2014 before the baby comes and it seems to me that they can already start taking out less taxes since the birth date of the child has nothing to do with how much taxes I will owe. ie, it doesn't make a difference if the child is born on Jan 1st 2014 or Dec 31 2014, you still claim the child for the whole year. Hope this makes some sense.
You can claim 50 dependents on your W-4 as it is not a document that is filed with the IRS, it is held by your employer in order to determine how much to withhold. The only thing that matters to the IRS is how many exemptions you put on your tax return (that has to be accurate and correct). But as far as your W-4 you can put anything you want. And in fact it is better to put as many as possible because then they don't withhold as much from each paycheck.
Make that new W-4 effective Jan. 1--you get to claim the kiddo and HOH filing status all year long in the year they are born. It's fair because you lose *some of* those benefits for the whole year in which he turns 18 so it works out. It would be too much recordkeeping for the IRS if they did otherwise.
Make that new W-4 effective Jan. 1--you get to claim the kiddo and HOH filing status all year long in the year they are born. It's fair because you lose *some of* those benefits for the whole year in which he turns 18 so it works out. It would be too much recordkeeping for the IRS if they did otherwise.
You can also change your withholding for each paycheck if you wanted too-your HR department wouldn't be happy but you could.
Also, are you sure you can file as head of household??
I'm sure as I can be. I'm not married and I will provide 100% support for my child all year long. No one else will claim the child as a dependent. I pay 100% rent, bills, food for the house.
You can claim 50 dependents on your W-4 as it is not a document that is filed with the IRS, it is held by your employer in order to determine how much to withhold. The only thing that matters to the IRS is how many exemptions you put on your tax return (that has to be accurate and correct). But as far as your W-4 you can put anything you want. And in fact it is better to put as many as possible because then they don't withhold as much from each paycheck.
And then when it turns out that you didn't have enough withheld during the course of the year, you may get hit with a penalty when you file your taxes.
Great advice.
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