The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: w-4 and taxes not adding up? HELP!||Date: 2/1/2000 2:47 PM|
|Author: compuser2||Number: 26633 of 120798|
Welcome to the "marriage" penalty.
Each employer takes taxes based on your individual earnings. In this case you are both in the lower tax brackets. However, combined I think you end up in a hire tax bracket. Thus no refund. Married filing single usually doesn't work out any better unless there is a big difference in incomes. And usually itemized deductions as well.
For 2000, figure out any raises you or your wife are likely to get and refigure what taxes would be. Then have an additional amount taken out each week so that you won't owe as much next year. (Divide difference by the number of times you get paid each year and round up to nearest dollar.
Congrats on the Fed return are in order. It is very Foolish to be so close to breaking even. Therefore YOU have the chance to invest the money, not the goverment.
Hope this helps
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