w-4 withholding

[BeckyBoo123]

Hi,

I just started working and my hubby and I have a combined total of over 200,000 and he claims about 8. We had to pay $2461 and our refund was $4968. What can my husband do to claim correctly. The w-2 worksheet is very confusing. Also I claim 0.

Let me know.

[Loretta P]

The new versions of the W-4 no longer have you claim Filing Status (Single, Married Filing Joint, etc.) and the number of exemptions (0, 1, 2, etc.).  Instead the IRS wants taxpayers to estimate what has been earned to date from all sources (multiple jobs, retirement, self-employment, etc.) and how much has been paid in through withholding to calculate what the federal withholding should be for the rest of the year.  

TurboTax has two calculators to help you make these decisions.  

TurboTax's W-4 Calculator

TurboTax's Tax Caster tax calculator - You are able to try different options to see how that would impact your potential tax return, if you would owe or get a refund. 

You can then use the results from the calculators to complete a new W-4 form for your employer.

[BeckyBoo123]

Thank you for that info. Is using the turbo tax w-4 withholding the same as the IRS one? Are they similar? Are they user friendly?

[Loretta P]

You're welcome!  I would use the TurboTax's Tax Caster tax calculator first to try out different situations.  It goes step by step having you enter your income estimates, then deduction estimates and withholding/estimated tax payments.  Once you are comfortable where your results end up, you can use that information to complete the TurboTax's W-4 Calculator.  It is similar to the IRS W-4 calculator.  The TurboTax calculators do have helpful explanations to help you get through the process.