If I claim 4 exemptions on my state form (self/wife/2 kids), should my wife then claim zero exemptions on hers to come as close to possible to breaking even?

[soccertodd4osu3]

We are married filing jointly. Just want to make sure by me filing for 4 exemptions as the highest earner that she also should file for 4 exemptions on her state form. Seems like that would be double counting exemptions and cause too little to be taken out but not positive on how that works.

[xmasbaby0]

The more "exemptions" you claim the LESS the employer withholds.  If you claim one or zero then they withhold more.

And how about your federal W-4---do you have that set up for the two of you?  You should prepare your W-4's together for your employers so that you have enough federal tax withheld.

https://ttlc.intuit.com/community/tax-topics/help/what-to-know-about-the-new-2020-irs-form-w-4-emplo...

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[Critter-3]

There are no exemptions on the W-4 any longer but you should not both claim the kids ... since the 2 wage earner worksheets can be a headache so use the IRS tool to help you fill in forms for both of you :   https://www.irs.gov/individuals/tax-withholding-estimator

Old rule of thumb still works:

Higher wage earner chooses married and enters the kids under 17   and the other person chooses single and no mention of the kids.  If either of you have more than one job each then all the smaller jobs choose single and nothing more.  

[reony]

Hi I know this is an older post, but it's that still true now? My wife should make her W4 as Single?? Not Married filing jointly like mine? 

[Critter-3]

Old rule of thumb still holds but try this tool : 

Use the Tax Withholding Estimator on the IRS web site to figure out what you and your husband should each put on the W-4 forms that you give to your employers. It's much easier than using the worksheets on the form. It will let you adjust your withholding to get the approximate refund amount that you want.

Tax Withholding Estimator

[reony]

I find the worksheet table really easy to follow actually, and the estimator very confusing. The reason being, I just got a new job, and only got one paycheck. The questions related to YTD wages and stuff don't make sense since I just got the job. So when it estimates my annual income, it's way off.

[Critter-3]

Extrapolate the annual income instead ...

Here is some information that may help you with how to complete your W-4's for your employers.

https://ttlc.intuit.com/community/tax-topics/help/what-to-know-about-the-new-2020-irs-form-w-4-emplo...

https://www.irs.gov/pub/irs-pdf/fw4.pdf

https://www.irs.gov/individuals/tax-withholding-estimator

[reony]

Thanks I'll go through the calculator again, and probably schedule an appointment with our tax advisor too.