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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.

Ira
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