Sunday, May 9, 2010

Money savings after marriage deduction changed?

I just got married. Once I change my employment forms, and add on the deduction of my husband, what extra percentage of my paycheck will I get back?Money savings after marriage deduction changed?
1. There is no such thing as a deduction of a husband. You mean the ';allowance'; or ';exemption'; for your husband. An allowance is claimed on the W-4 that you give your employer. An exemption is claimed on the return that you send the government.


2. If your husband also works, then the allowance for him can be claimed on only one W-4, yours or his, not both. Also, you lose the allowance that you might now be claiming for being a single person with only one job. Therefore, you will have one fewer than you have now.


3. If he does not work, then you can claim the allowance for him. Additionally, the allowance that you might now be claiming for being a single person with only one job becomes the allowance for being a married person with a nonworking spouse. Therefore, you will have one more than now.


4. In either case, there is not a fixed percentage. If your income is very low, then no income tax is being withheld anyway (only social security and medicare are being withheld, and they are not affected by what you claim), so nothing will change. If your income is very high (millions of dollars), then the amount withheld will not change very much for reasons that are a longer story. If your income is somewhere in between, then it might change some, but the amount cannot be estimated, not even to within a factor of two, without knowing how much you make.


5. If you and your husband file separately, then you cannot claim the exemption for him on your return. If you file jointly, then you jointly claim the exemption for him and the exemption for you, on one return. In the latter case, your taxes will change, but the change in your taxes is more a result of computing the tax based on your combined income, instead of your individual income, than it is a result of the exemption.Money savings after marriage deduction changed?
go to: www.paycheckcity.com





You can enter your payroll info and change the filing status from ';Single'; to ';Married';.





Note: If your spouse is also working, you should probably stay at ';Single'; on your W4. The tables for ';Married'; assume that the other spouse does not have income. Many newly married couples get a rude awakening when tax season rolls around and the both rushed out earlier in the year and changed their W4s from Single to Married.
I doubt you will get anything back from your paycheck


when you and your husband file jointly, you have $3650 personal exemption, and standard deduction of $11400, a total of $18700


and depending on additional credits etc. and how much both of you paid in through payroll deductions, how much refund you will get(or possibly have tax to pay)

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