What should my W4 Allowance be?

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  • What should my W4 Allowance be?


Answer #1 | 02/01 2014 12:37
Married/3 allowances sounds good. If you and your wife are paying for her school out of pocket, you might be able to increase that. If most of the cost is covered by grants or scholarhips, stick with 3. Yes you're in a 15% bracket. If you already changed your W-4 from single/2 to married/3 you're already getting the extra money in your paycheck. I don't know if you understand how brackets work, but dropping from a 25% bracket to 15% does not mean you save anywhere near 10% of your total income.
Answer #2 | 02/01 2014 12:43
You are probably doing this properly. First, you did change the W4 form.which is designed to have the Employer deduct an estimate of your next tax. If you have other income that needs to be a consideration. At tax filing time you will probably get a Education Credit for your wife and maybe an Earned Income Credit, but your employer has no way of predicting that. I would not think using a % bracket method would be reliable in your case. Your path you have followed should be correct. Good LucK
Answer #3 | 02/01 2014 16:47
Probably married and 2 Allowance at this time in your life BUT if you do want to push things some you could use 3 and then wait and see how close it will come out during the 2015 tax filing season for the 2014 1040 FIT return at that time in your life. Hope that you find the above enclosed information useful. 01/02/2014
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