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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28088
Experience:  Taxes, Immigration, Labor Relations
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Hello, My husband started a new job on 11/5/13 which grosses

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Hello,

My husband started a new job on 11/5/13 which grosses $1400 per week. We have two kids and one coming in December. I have been on unemployment since 9/12/13 and prior to that was making $34,000/yr. Prior to his new, current W2 position, he had approximately $50,000 in 1099 work during 2013. We have many deductions for the 1099 work.

Currently, he is paid weekly. He claimed 5 exemptions on his W4, and between federal and NY state and local taxes on his first two paychecks, he had more than $300 withheld. I would like this to be more like $150 if possible. How many exemptions should we claim?

Lev :

Hi and welcome to our site!
Assuming your husband will file W4 form as Married with four allowances and gross weekly wages $1400 - in this case following will be withholding


Federal Withholding $124


Social Security $86.80


Medicare $20.30


New York $70


SDI $0.60


-Net Pay $1,098

Lev :

To increase withholding - he need to claim less allowances - for instance - with 3 allowances


following will be withholding


Federal Withholding $135


Social Security $86.80


Medicare $20.30


New York $71


SDI $0.60


-Net Pay $1,086
As you see reducing the number of allowances results in larger withholding for income taxes.
However - because your spouse will also owe some self-employment tax - he might want to have additional federal income tax withholding with each paycheck.

Customer:

OK, thank you. I was actually trying to increase our weekly take home so I think we need to increase from 5 on the W4. As for the self employment tax, I believe we will have many deductions this year including equipment, health care costs, etc.

Lev :

Yes - to increase the take home amount - you need to claim more allowances.
with FIVE allowances


following will be withholding


Federal Withholding $113


Social Security $86.80


Medicare $20.30


New York $68


SDI $0.60


-Net Pay $1,111

Lev :

with SIX allowances


following will be withholding


Federal Withholding $101


Social Security $86.80


Medicare $20.30


New York $67


SDI $0.60


-Net Pay $1,123

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