If you don't want to owe taxes at the end of the year...

[lttlmc3]

Is it better to file married or single?

 

[CaliforniaDreamin]

It doesn't have anything to do with if you are married or single. It depends on how many dependents you claim on your w4 when you start work. It can be changed it at anytime. If someone want things to be as even as possible, claim 1 if they are the only one in their family. If they are married, they could claim 2. Basically whatever matches the amount of people in someone's family is going to be the most even taxes they will pay. If they want a refund, they can claim less or even zero dependents.

This effects how much tax comes out of each paycheck. The more dependents someone claims, the less tax they will pay thru the year. But if they claim more than 1 and they have more than just themselves in the family, they will end up paying the taxes back at tax time.Someone can claim 18 dependents, and maybe not be taxed at all thru the year, but they will owe it when they file a tax return income, unless they actually have 18 dependents. But it is legal to do this.

There used to be what was called a "marriage penalty" but this has been done away with so it would not effect anyone.

I can't give you financial advice, but I claim zero dependents. I get a tax refund every year. I have never owed taxes at the end of the year.

 

[Normangirls]

There are four things that impact the amount of money withheld from your paycheck:

1. How much you make -- each pay period, your withholdings are calculated based on your taxable earnings (for example, if you make more one period because of a lot of overtime, it could kick you into a higher tax bracket and the percentage they withhold may go up).

2. Married versus single -- you check one or the other on your W-4, and if you ckeck single you will have more taken out than if you check married.

3. Exemptions -- the more exemptions you claim the less they withhold (line 5 on the federal W-4).

4. Additional amount -- you can indicate on your W-4 that you want an extra amount of money taken out each pay period.

You can affect your withholdings by manipulating #2, #3 and #4.

 

[furb & dez]

There are four things that impact the amount of money withheld from your paycheck:

1. How much you make -- each pay period, your withholdings are calculated based on your taxable earnings (for example, if you make more one period because of a lot of overtime, it could kick you into a higher tax bracket and the percentage they withhold may go up).

2. Married versus single -- you check one or the other on your W-4, and if you ckeck single you will have more taken out than if you check married.

3. Exemptions -- the more exemptions you claim the less they withhold (line 5 on the federal W-4).

4. Additional amount -- you can indicate on your W-4 that you want an extra amount of money taken out each pay period.

You can affect your withholdings by manipulating #2, #3 and #4.

Yup, exactly.

 

[ancestry]

Is it better to file married or single?

It isn't necessarily "better" to file either way -- you are required to file what you are. If you are single you must file single (or maybe head of household) and if you are married you must file married (or married but filing separately). Your martial status isn't open for negotiation when filing taxes.

 

[kydisneyfans]

You can file married, or married filing single.
In KY for state taxes, we file joint for federal and separate for state.

We have 20 dependents for tax purposes even though we have 1 child. We then have a set amount taken out each pay after we estimate at the beginning of the year what we should make, and then adjust midyear as needed. We come very close to breakeven at the end of the year that way, never more than a $300 swing either way.

 

[dcfromva]

Your best bet is to use the IRS withholding calculator which takes the guesswork out of it:

Link to IRS withholding calculator

 

[Acklander]

It isn't necessarily "better" to file either way -- you are required to file what you are. If you are single you must file single (or maybe head of household) and if you are married you must file married (or married but filing separately). Your martial status isn't open for negotiation when filing taxes.

I don't think they're talking about how they file their taxes, but how they're filling out the withholding form. DH and I both fill out single/0 on our W4 so we don't end up owing at the end of the year. If you file married then it's withholding based on the fact that there are 2 deductions for that income, it doesnt take in account a working spouses income

 

[believenfaith]

I'm not tax expert...but years ago when we first married we filed "married but separate" returns. At that time, the interest paid on students loans was deductable. However, because we didn't file jointly, I could not take the deduction.

I would check to see if there are any potential deductions that could be impacted if you decide to file separate returns.

 

[Cheshire Figment]

Is it better to file married or single?

Yes.

Mike (CPA Retired)

 

[lttlmc3]

yes.

Mike (cpa retired)

huh?

 

[scrapquitler]

Is it better to file married or single?

irrelevant. You are asking the wrong question.

If you don't want to owe ADDITIONAL taxes at the end of the year, you need to be sure that you have the correct amount withheld from your paycheck during the year so that enough has been paid in by the end of the calendar year.

You're paying taxes all along with that withholding. If you get a 'refund' it just means you have overpaid. If you 'owe' in April, it means you didn' withhold enough.

 

[DISNEYSIX]

Is it better to file married or single?

Filing married means you pay less taxes and so you will get more money back at the end of the year than filing single. Here is the IRS withholding chart (skip on down to pg 3):
http://www.irs.gov/pub/irs-pdf/n1036.pdf

 

[kaytieeldr]

Is it better to file married or single?

Yes.

Mike (CPA Retired)

huh?

Cheshire Figment merely answered the specific question that was asked. Think about it .

It might help to note that (a) the question asked wasn't the one intended, and (b) CF is a retired CPA .

 

[usd2bmd]

My husband and I both claim Single 0 on our w-4 so that we have the most taxes withheld from our checks (and since we live in New York {the tax capital of the world} we also have extra taken out for the state) when we file, we file a joint return. Some people don't agree, they figure why let the gov't use your money. But I figure, it's like a savings account that I put money into and can't touch at all during the year. Then when we file it's like a windfall we didn't plan on...