Monday, May 10, 2010

Should I change my tax withholding now if I'm getting married later this year?

I am getting married in three months. Should I change my tax withholding now from ';single'; to ';married'; since I will be filing my taxes next year as married filing jointly anyway? I see most people do this after they get married, but I can't see why I shouldn't do this before I get married. The extra money each paycheck would come in handy.Should I change my tax withholding now if I'm getting married later this year?
Go to the W4 assistant, enter your data based on your joint income, and it will compute your withholding allowances for you.





http://www.paycheckcity.com/w4/w4instruc鈥?/a>Should I change my tax withholding now if I'm getting married later this year?
If you are doing your taxes this year with a program do a 2nd try ';pretending'; you are married. You might actually be paying more than when you were single.





I got married last year, and because of the differences in my wife and my salary, we owe A LOT in taxes this year.
You can claim as many or few on your W-4 as you wish. I have a client that claims 6 kids that he doesn't have. You just have to make up the difference when tax time comes around next year.
Its up to you. You're taking the ';risk'; that you may wind up underwithheld for the year, but it won't make any difference in the total tax you end up paying.
it really depends on how much money you and your wife will be making. If you both are working and making a considerable amount then you may not want to change to make sure that you have enough taken out at the end of the year.
It is a question personal preference except you need to be within a $1000 of what your tax liability is by the end of the year. If you are short on withholding then you will have to pay the IRS what is lacking and most people prefer a refund over sending in money.





If you are short you may have to pay a penalty and interest.

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