- quote -

or hire a really really really expensive accountant.
or lose your jobs.
or maybe get divorced often.
or...
:-)

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

OH, and one thing more. Have children. Lots of them.
That'll lower your taxes.

However........

ChEAr$,
Harlan Lunsford, EA n LA
(married with children)

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

success_ny[at]yahoo.com wrote:

- quote -

Check the IRS w/h calculator at
http://www.irs.gov/individuals/artic...=96196,00.html
It will capture your situation more accurately than the W-4
worksheet. Although you may not like the result, you can get
very close to zeroing out any payment/refund come April 15.

Based on the info you gave above, 0+ $800 (weekly ?) may
just be correct :-(

Worse, you both may need to do the same if pay is same with
no deductions etc.

--reed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

success_ny[at]yahoo.com wrote:

- quote -

The W4 is really straightforward. Only 'gotya' I know of is
it can't foresee AMT issues.

Each exemption/allowance is $3200 of income that won't get
taxed. You've not mentioned anything that would be a tax
deduction, mortgage/property tax being the biggest. NY city
and state are Schedule A itemized deductions, so you'd get
some benefit there.

The best advice I'd give you would be to get a copy of
TurboTax and enter the numbers you expect to end 2005 with.
If, after a few paychecks, something still seems wrong you
can always adjust the withholdings.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

That could be right for NYC. The two of you need to
generate deductible expenses, such as mortgage interest and
real estate taxes.

--
Best regards
Han
email address is invalid

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

success_ny[at]yahoo.com wrote:

- quote -

Your federal tax liability will probably be about $41,000.
Your state / local liability will probably be about $21,000.
Add in Social Security and Medicare for another 14,000. So
$76,000 in withholdings, which means more like 38%.

Going by Circular E, "Married but withhold at higher single
rate, 0 allowances" would give each of you about $22,000 of
Federal withholding in a year.

Phoebe

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

success_ny[at]yahoo.com wrote:

- quote -

I don't understand why it would be so high, but I am
not familiar with NY state taxes, if any, which I
presume are included in the "60%".

- quote -

Under those circumstances, I would imagine that your
tax liability will indeed be high. How do you know
that the W-4 worksheet results are incorrect?

- quote -

You are not required to use the W-4 worksheet to compute
your allowance, notwithstanding ambiguous IRS statements
to the contrary. See IRS Pub 505 at
http://www.irs.gov/pub/irs-pdf/p505.pdf , notably the
section "Alternative method of figuring withholding
allowances".

In a nutshell, you can estimate your total tax liability
for this tax year (that is, what you will file in 2006),
then use the withholding tax tables to determine how much
to withhold from each paycheck.

Do the same for state withholding.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I live in New York City. I recently got married and my wife got a new
job. She has to fill out the W-4, but based on the worksheets on that
form, she can only claim 0 allowances. She was told in that case, about
60% of combined taxes will be withheld from her paycheck. I read the
instructions for W-4 and went through all worksheets. According to
those, not only she should put 0 as the total number of allowances but
she should specify about $800 additinally withheld from each paycheck.

Our situation is simple: no mortgage, no kids, both working, each
making about 100K/year

Can anyone help with this?

Thanks.