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No. of Recommendations: 2
1. $43000 is spouse; $25000 is wife (what can I say -- I had a bad year. I'm sure I'm not the only US income earner who was laid off AND had to take three months unpaid medical/maternity leave).
c) $36500 earned already by hub; $21000 by wife;
2. Withheld from hubby: $5000 so far; withheld from wife: $4200; $840 more projected withheld from hubby's salary for rest of year.
3. No state income tax.
4. No childcare expenses for this year.

Based on $68K salary, $69 interest income, $3000 L/T capital loss, 1 dependent, $14571 mortgage interest/RE tax, your taxable income will be $41798. If you have any charitable contributions, or deductible IRA contributions your taxable income will be less.

Under the old tax rates, your tax liability would be $6266. You've already had $9200 withheld and you expect to have another $840 withheld from your husband's pay. This will result in a refund of nearly $3800. You should submit W-4s to both employers with as many exemptions as is necessary to get your withholding to $0.

IMPORTANT!!! If you do this, you must recalculate your withholding allowances and submit new W-4 forms to your employers at the beginning of January, 2002, or you will have serious problems at the end of next year.

Congratulations on the new addition to your family.

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