Do I have to claim myself as an allowance ( entering 1 on line 5) on my W4? I'm worried about owing money at the end of the year. My husband works and makes much more money than I do, as I have a part time job at 10.25 an hour. He however makes less than 65,000 a year.
Also should I check married or married, but with hold at higher single rate? What is the difference?
I am not claiming anything else just myself as an allowance if that is the logical thing to do.
I highly recommend married, but with hold at higher single rate and ZERO allowances on line 5 since you are the lower wage earner and you don't want to owe. If your spouse uses married and 2 allowances then he may need to reduce that to zero as well if you find you still don't have enough withheld.
My husband has 1 allowance and Married and we have always received a return prior to me working.
If you find the refund is too large then later you can add some allowances to your W-4 ... but always use the Single option.
what is the difference between the two options of married or married but withhold .....?
Easiest way to answer that question is for you to look at the IRS Pub 15 .... charts start on page 43 ... find your pay period & the single or married charts then look accross the allowance columns ...
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p15.pdf">https://www.irs.gov/pub/irs-pdf/p15.pdf</a>