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The 2010 tax tables have not yet been published, but they are expected to be either the same or very close to the 2009 tables, so I will base my answer to you on the 2009 information.
If you will have total income for the year from your salary and interest of $102,500, then after applying your standard deduction of $11,700 as a married couple, plus two personal allowances of $3,650 each, this will give you taxable income for the year of $83,500. Your estimated federal tax liability on that amount will be $13,250.
If you fill out your W-4 form as married with 2 allowances, they would withhold approximately $13,000, which means you would owe another $250 at the end of the year. If you fill out your W-4 form as married with 1 allowance, they would withhold approximately $13,912, which means you would get a refund for approximately $662 at the end of the year.
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Thank you asking
If I were to decide to use Married With 2 Allowances, is that for both Federal and State?
The estimates I gave you are for federal tax only. But when you fill out your W-4 form those same allowances generally apply to your state taxes as well.
Based on your income I estimate that your NJ state tax for the year should be approximately $2900. If you claim married with 1 exemption they should withhold $3,000. If you claim married with 2 exemptions they should withhold $2,800. This is for NJ taxes only.
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So if I change to Married - 2 Allowances for BOTH federal and state,
how much more can I expect in a bi-weekly paycheck (26 per year)?
... taking into consideration both federal AND state.
Thank you. I'll be accepting your answers =)
I don't really think I can answer your question, and the reason is that you said you are expecting a $7,000 refund this year. If your are currently filling out your W-4 form as single with no allowances, and you will be claiming the standard deduction when you file, then I cannot see any way possible you should be getting a $7,000 refund.
All I can tell you is that if you change your form to married with 2 allowances for both federal and state, they should withhold approximately $13,000 for federal taxes and $2,800 for NJ state taxes. Compare that to what was withheld from your pay this year for federal and state taxes, and that will give you an idea of how much more you should expect on your paychecks.
I'm assuming a $7,000 refund based on the fact that my W4 has been "Single - 0 Allowances" all year, but I'll be filing as "Married - Filing Jointly".
I just got married 2 weeks ago.
Wouldn't that mean that I've overpaid all year long,
but when I file (married jointly), I'll get $7,000 back?
$3,650 x 2 = $7,300 - $250 = $7,050
Or am I mistaken?
I did not realize you were getting married before the end of the year, so that will make a difference in your refund since you will be filing as married with one extra dependent.
But it does not mean you will be getting back $7,000.
The $3,650 exemption you get for each dependent strictly reduces your taxable income by $3,650. It doesn't mean you get that much back in tax for each dependent you claim.
Sorry about that.
W4 currently says "SINGLE 0 ALLOWANCES".
Will be filing "MARRIED FILING JOINTLY" for 2009.
TurboTax's Life Events Calculator says I'll get an additional $6,816:
That's where I got the $7,000 figure.
My goal was to figure out how many allowances I need to claim
to get that in my pay-checks and not wait until I file.
Does that $6,816 figure make sense?
Would "MARRIED 2 ALLOWANCES" be what I need to do?
I apologize, but I need to leave the forum at this time and will not have time to run all of these additinal calcualtions for you.
But I will put your question back on the open board to see if someone else here has time to help you with your questions.
To re-word the question so I'm clearer --
Income = $100,000.Interest income = $2,500.
Current W4 status = Single 0 Allowances
No 401k, HSA, or other weird deductions.No alimony, child support or anything else.
Just got married two weeks ago.Wife is unemployed.
TurboTax's Life Events Advisor says I can expect $6,816 more if I file jointly: http://turbotax.intuit.com/tax-tools/
Is that true? If so, how many allowances do I need to add to my W4 to get that in in my paychecks in 2010 instead of waiting for my refund?
It would be helpful to know how much your employer has withheld year to date for federal and NJ state taxes and how much they withhold each pay period.
Each pay period --
Keep in mind, I only expect to receive about $82,000 this year.
Next year, it will be $100,000 for the year.
I got a raise in August, which is why the numbers changed.
I have put your question back on the board to see if someone else can help you with this.
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