Dual income family. My wife and I both earn wages. I earn more than my wife does. On our W-4 forms, should I claim both exemptions and have my wife claim none?
-
-
Go here to figure it out...
Just follow through step by step.
Redo in January 2007
Doug -
Claiming exemptions
The lower income spouse should claim the exemptions unless you want the total withholding to fall short of the tax you will owe.
The higher the income, the bigger the reduction to withholding the exemptions create.
In other words if you are in the 35% bracket and exemption reduces your taxable income by 35% of the exemption, so if your wife is in the 10% bracket, her taxable income is reduced a lot less by the exemption.Comment
Comment