My current salary is $52,000 a year.
I also get another monthly income which will be a total of $5,594 from In-Home Support (a social services program from the State of California). This extra check is from the state for being a caretaker to my 87 years old mother who lives with me. For the $5,594 yearly income that I will receive from the State of California, there is no Federal income tax
or State Income Tax withheld.
My filing status is Head of Household. I contribute 3% of the $52,000 to a 401k. I claim my mother.
The only other credits I will have is a 1098-E for a student loan interest. The amount of interest last year for 2011 was $881.
So my total income is $57,594.
How many should I claim on the W-4 and the California DE-4 for 2012? I am claiming 2 right now. Am I claiming too many? Should I claim only zero? I do not want to pay back in 2013. I would rather have enough deducted right now.
Also, I will get raise in October 2012. I have no idea how much that will be, but I am assuming it will about 3%.