number of allowances in W-4 form

[gonogo]

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I'm starting internship this July and I'm trying to estimate the number of allowances I'll claim. My wife is already a resident and we'll be filing taxes jointly. I filled out the IRS withholding calculator and it suggested both my wife and I put 0 allowances. I'm just not sure whether that would make much sense. Does this sound right? Thanks.

 

[SushiKitty]

Not really, but let someone else with more knowledge tell you that. Are you claiming dependents? Shouldn't you at least be claiming one allowance for yourself?

I'm claiming 5 or 6 allowances (i forgot which one i put), which is high, but this is really an extraordinary year - only working about 6 months of the year and having multiple above-the-line deductions and tax credits.

When you filled out the witholding calculator did you / can you use any of the following to decrease your AGI?:
-lifetime learning credit on tuition paid in 2009
-moving expenses
-student loan interest you will pay in 2009

Read the IRS website to see if there are any other deductions or credits you may qualify for.

Also...if you are claiming "0" allowances and are expecting a big refund in April 2010, you are essentially giving the government an interest free loan on YOUR money! You want to try and break even at the end of the year, but I think you must pay something like 90% of your taxes during the year (someone check me on this), otherwise you get penalized.🙁

 

[Sol Rosenberg]

If you and your spouse have 2 jobs, and filled out the 2 job/2 earner worksheet correctly, it is very possible that you should use 0 allowances (and may, in fact, need to have extra withheld from your check, depending upon your 2 salaries.)

 

[SushiKitty]

Haha forget what i said! That guy seems to know what he's talking about.

 

[Sol Rosenberg]

Haha forget what i said! That guy seems to know what he's talking about.

But, I'll add that you said something that I forgot: The OP needs to fill out the other worksheet on the W-4 form that accounts for adjustments to income and itemized deductions (if any.)

Bottom Line: OP, fill out the worksheets on the W-4 to the best of your ability. Then, do what it says to do.

 

[John Deere Gree]

But, I'll add that you said something that I forgot: The OP needs to fill out the other worksheet on the W-4 form that accounts for adjustments to income and itemized deductions (if any.)

Bottom Line: OP, fill out the worksheets on the W-4 to the best of your ability. Then, do what it says to do.

...and add a fudge factor if needed. I added a couple more exemptions than what it said due to the deductions I know I'll be claiming.

 

[gonogo]

Thanks to everyone for the good comments and advise. I decided to claim 0 allowances as it seems itd be the best choice.

 

[John Deere Gree]

Thanks to everyone for the good comments and advise. I decided to claim 0 allowances as it seems itd be the best choice.

Nothing like giving the gov't an interest free loan...