Hi, I got married in 2023, and my spouse has a sizeable tax bill that he still owes from past years so we want to file separately. I make approx $100K/year on a W2 and he makes about $30K/year on a 1099 (gig work). I have one college student from my previous marriage (age 19) who I support 100% and still claim as a dependent. My question is: how should I complete my W4 so that I don't end up with a tax bill next April? I would strongly prefer to get a tax REFUND. Thank you!
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I know the W-4 is confusing. You can submit another W-4 after you see what the correct amount is you want taken out. Use the calculator I provided below.
If you still need more taken out then -
Simply add an additional amount on Line 4(c) for "extra withholding." That will increase your income tax withholding, reduce the amount of your paycheck and either jack up your refund or reduce any amount of tax you owe when you file your tax return.
W-4 instructions -
By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.
If you have 2 or more jobs -
When filling out your W-4 forms, there are a few tips to keep in mind: For the job where you make the most money, claim all of the allowances you normally would on the W-4 form. For any other job that you have (your second job for example) claim zero.
If you want to owe the least amount when filing your taxes, you will claim 0 on the W-4, so the job will withhold at a higher rate. This is important especially if you have more than 1 job.
If you didn't account for each job across your W-4s, you may not have withheld enough, so your tax refund could be less than expected.
Calculator - https://apps.irs.gov/app/tax-withholding-estimator
Instructions - https://www.irs.gov/pub/irs-pdf/fw4.pdf
I'm sorry, I don't understand. Your instructions say placing a "0" on line 5 will result in the maximum refund, but Line 5 on the W4 form is the signature line. Can you please clarify?
You can (and probably should) file a Joint return for 2023. You can file an Injured spouse form 8379 with your return to protect your part of any refund.
Here is a blank form 8379
http://www.irs.gov/pub/irs-pdf/f8379.pdf
And the 8379 instructions
http://www.irs.gov/instructions/i8379/ch01.html
Here are some things to know about filing separately...............
It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction. And if you are in a Community Property state MFS gets tricky to figure out.
In the first place you each have to file a separate return, so that's two returns. And if you are using the Online version that means using 2 accounts and paying the fees twice.
Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong. If one person itemizes deductions then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!
And there are several credits you can't take when filing separately, like the
EITC Earned Income Tax Credit
Child Care Credit
Educational Deductions and Credits
And contributions to IRA and ROTH IRA are limited when you file MFS.
Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.
Page 3 of the W-4 line 5 is where the zero goes. there are 4 pages total.
You do have a lot of moving pieces this year! I suggest that you spend some time experimenting with the W-4 Calculator tool. This will let you calculate all possible withholding scenarios; including the difference in your withholding requirements for married filing separately vs married filing jointly.
I like these calculators because they help strengthen the understanding about how the various elements (such as filing status and dependents) impact your ultimate tax liability.
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