Because it's late and I can't call my father, and google is not helping....
I'm filling out a new W-4 for work, and I'm having a bit of a quandary.
For option C, it tells me to enter "1" for my spouse, BUT, if I have a working spouse (which I do), I can enter "0", which will help me avoid having too little tax withheld. Okay, sounds good. I'd like to not write a check at the end of the year.
But, when I got down to the nitty gritty of it and calculated out everything, it says they need to take an extra $50 from each paycheck for tax withholding. That's $100 a month. That is like...10% of my check. Not counting the other state taxes. That's my electric and internet bill. Or my gas for the month. Or dog food and medications. Yes, I have Mike's income now, too...but he makes $200 more a month than I do. Which makes our combined income less than $40,000 a year. $100 a month is a lot of money.
However, when I enter "1" for my spouse instead of "0", it cuts the withholding in half, and they only want $25 per paycheck. Much more doable.
So. Do I enter the "1" or the "0"? Pay the $100 a month, hope my budget survives, and hopefully look forward to a nice return check come tax time? Or do I pay less, have a happier budget, and maybe have to write a check at the end of the year?
DECISIONS.
I'm filling out a new W-4 for work, and I'm having a bit of a quandary.
For option C, it tells me to enter "1" for my spouse, BUT, if I have a working spouse (which I do), I can enter "0", which will help me avoid having too little tax withheld. Okay, sounds good. I'd like to not write a check at the end of the year.
But, when I got down to the nitty gritty of it and calculated out everything, it says they need to take an extra $50 from each paycheck for tax withholding. That's $100 a month. That is like...10% of my check. Not counting the other state taxes. That's my electric and internet bill. Or my gas for the month. Or dog food and medications. Yes, I have Mike's income now, too...but he makes $200 more a month than I do. Which makes our combined income less than $40,000 a year. $100 a month is a lot of money.
However, when I enter "1" for my spouse instead of "0", it cuts the withholding in half, and they only want $25 per paycheck. Much more doable.
So. Do I enter the "1" or the "0"? Pay the $100 a month, hope my budget survives, and hopefully look forward to a nice return check come tax time? Or do I pay less, have a happier budget, and maybe have to write a check at the end of the year?
DECISIONS.
