How many allowances do you claim on your W-4... 4? One for each member of your family? For both you and DH?
When our kid #3 arrives at the end of this year I think we need to re-examine our allowances and try to get more in DH's paycheck, and less of a tax refund at the end of the year. (we'll have three in daycare starting Feb. 2010, need every penny...)
Re: Those with two incomes and two kids
Exactly!
DH is set at married, 1, but withholding at a higher rate. Mine is married, with 2. We usually get around $3K back on taxes - but I prefer it that way. I am the higher income earner.
A lot of it depends on what your take home pay is. If you make a lot, you shouldn't claim as high a number as if you made less, KWIM?
I'm the higher earner and I claim 4. DH claims 0. We do this because on the W-4 worksheet the instructions say:
(honestly this confuses me a little, because I'm not sure if I should keep it as is, or have me claim 4 and DH claim 4, or have me claim 8?)...
Two earners or multiple jobs. If you have a working spouse or more than one job, figure the total number of allowances you are entitled to claim on all jobs using worksheets from only one Form W-4. Your withholding usually will be most accurate when all allowances are claimed on the Form W-4 for the highest paying job and zero allowances are claimed on the others.You might try this handy dandy government provided tool. DH and I had a hard time with it when we were both working. We have some additional tax complications though.
Calculator