[OnMyWay732]

Hey,

For anyone that can help. My wife started doing some contracting work outside of her normal job. Didn’t make a ton, around $6,500. In order to offset the tax that would be owed, we both changed our allowances at our full time jobs to 0, thinking more taxes would be taken out. We both had pay raises at the time so we couldn’t tell how much more/less is actually being taken out.

Doing our tax returns, it appears that we actually had less taxes taken out than last year, and our personal income before any deductions or the contracting work is around $14,000 more than prior year.

Does anyone know why claiming 0 would have that much less taxes be taken out than PY???

Thanks in advance!

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Liss, Master of Coin]

I also use paycheck city, all the time. It's great.

CPA (MA, Non-Reporting)

The difference in winning & losing is most often, not quitting - Walt Disney

B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.

Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.

[OnMyWay732]

^ never heard of it but I just found it and like it. It told me to do exactly what I just calculated. Thanks!

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Peterman25]

There is a little box that you can check on a W-4…Withhold at the higher single rate. You want to check that one…especially if you don't have kids and make too much $$.

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[mla1169]

If you select married,but withhold at the higher single rate the taxes taken out will be close to double what they will be if you simply select married.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[OnMyWay732]

I was under the assumption you couldn't choose single if you file married. I thought they had to match up come tax return time.

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Liss, Master of Coin]

There are 3 options:

Single

Married

Married, but withhold at higher Single rate

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

If you want somewhere in between “Married” and “Married but withhold at higher single rate”, you could probably select married, then put a dollar amount in box 6 “Additional amount, if any, you want withheld from each paycheck.”

Or if you don't want to risk owing any money, then do “Married but withhold at higher single rate,” a 0 in Box 5, and put a $ amount in Box 6 “Additional amount, if any, you want withheld from each paycheck.”

Playing around on paycheckcity should help you figure out what'll work out. It won't be exact, but pretty darn close.

CPA (MA, Non-Reporting)

The difference in winning & losing is most often, not quitting - Walt Disney

B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.

Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.

[Anonymous]

I was under the assumption you couldn't choose single if you file married. I thought they had to match up come tax return time.

Nope. The only person who ever sees the W-4 is your employer, unless they were audited or something and even then I'm not sure who if anyone could see them. Mostly, they're so that you can't blame your employer for you owing money – it's a CYA for your employer. It doesn't have to match up to anything.

[OnMyWay732]

Thanks for everyone's help. Luckily I found some deductions I could use on her Schedule C. Got it down a decent amount (don't worry, all legitimate deductions). I will most likely have our employers withhold more during this year so I don't run into the same situation again.

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[mla1169]

also while youre young and have many life changes (raises, babies, purchasing a home) it is a good idea to find a tax estimator online (I believe around june H&R block starts to offer one for the current year) and do a checkup on your year to date taxes so you have 6 months ahead of you to make any changes to affect the current year.

Once your life becomes pretty stable and you're done moving your career, family and home around its not quite as imperitive to run a checkup.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Hey, on the bright side, sounds like thinking you owed $2000 caused you to find more deductions, so you saved money this year that you wouldn't have without the unpleasant surprise! Might make writing that check to the IRS a little bit easier…

[Author]

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