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Stay at Home Moms
yourmysunshine
member
Tax related question for you.
yourmysunshine
member
I'm going to be a SAHM after our next LO is born.
Here are my questions:
1. Does the amount of taxes you pay become even less after you have 2 kids?
2. We'll be in a much lower tax bracket after I SAH. Will this make a difference in how much taxes are taken out of DH's check?
I'm just wondering how much of a difference this will all make for us financially.
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Re: Tax related question for you.
1. Does the amount of taxes you pay become even less after you have 2 kids? It depends. But you will be able to claim an additional dependent.
2. We'll be in a much lower tax bracket after I SAH. Will this make a difference in how much taxes are taken out of DH's check? The amount of taxes taken out of your DH's check is based on how many dependents he claims on his W-4 form with his employer.
What pp mentioned.....when I was working DH and I both put single and 0 because we only had our home. Now that I'm home he changed his w-4 to married and 1. Once LO #2 arrives he will change that to married and 2.
We both still file as single and 0. Does it make much of a difference once he files for married and 2 in how much less he has to pay in taxes monthly? I'm just curious. We have a meeting with our accountant/financial planner in 4 weeks to discuss our plan.
We both still file as single and 0. Does it make much of a difference once he files for married and 2 in how much less he has to pay in taxes monthly? I'm just curious. We have a meeting with our accountant/financial planner in 4 weeks to discuss our plan.
I don't know if this is helpful at all but we both filed single and claimed 0 exemptions and usually got about $300-$500 back on our taxes. Last year was our first year filing with me not having an income and having a child. We got $1,800 back on our taxes so DH changed his withholdings so that we don't get such a large refund this year.
We wanted to wait until we filed the first year to see how it affected our taxes before DH changed his withholdings.
Also, you can run the numbers on irs.gov to see what they recommend for withholdings.
If your husband changes his exemptions on his tax documents, his withholdings will change as soon as his human resource (or payroll) department processes them. They will not be POST applied, however, and exemption changes apply to the entire tax year (as in, if you have a dependent starting in September, you have it for the whole year). This will probably mean you still have a pretty large return.
Always claim absolutely everything you can, unless you want the help of the government in the form of a interest free savings account. The best tax bill is the one that is as close to zero as possible.