Need Help with Tax Question Please

I'm need to update my W-4 at work and there is the option of Martial status. It says single or married. But then it says:
'Check here and select Single status if married but withholding at single rate'

what is this??
Please help

I am no accountant but I was sitting with a former one at the first school I filled out sub forms for. Here is what he told me. If you check to withhold at a higher single rate you will be more likely to get money back in the end then to have to pay. If you check the married box, chances are they will take less then you have to take out of your paychecks each week and then when the year ends you will owe money.

But thats just what one person told me so please if anyone knows better please let me know too.

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Posted by MLAngelo

I am no accountant but I was sitting with a former one at the first school I filled out sub forms for. Here is what he told me. If you check to withhold at a higher single rate you will be more likely to get money back in the end then to have to pay. If you check the married box, chances are they will take less then you have to take out of your paychecks each week and then when the year ends you will owe money.

But thats just what one person told me so please if anyone knows better please let me know too.

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Our accountant basically told us the same thing. Make sure when you get your pay stub is says something like declared '0' on the top. This way they take out more and then you're more likely to get some back.

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Posted by MLAngelo

I am no accountant but I was sitting with a former one at the first school I filled out sub forms for. Here is what he told me. If you check to withhold at a higher single rate you will be more likely to get money back in the end then to have to pay. If you check the married box, chances are they will take less then you have to take out of your paychecks each week and then when the year ends you will owe money.

But thats just what one person told me so please if anyone knows better please let me know too.

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Thats most likely why i was told not to change it! lol cuz i get screwed on taxes every year cuz my second job doesnt take out enough state taxes and i wind up owing every year, so my dad prob told me not to change it so i dont owe even more!

I'm a CPA and pretty much what everyone has posted sums it up.

Putting single versus married on your W-4 means they will withhold more taxes. Depending on your overall tax situation, you may get a refund, or not, depending on your income versus payments.

For example, I have extra withholding because I have other income that has no withholding. So the single status and extra withholding helps cover the taxes on that income.

But if you and DH tend to both get refunds, if you want use of your money throughout the year, versus that refund, then you can always mark married.

Think of it this way: why should you let the government hold onto YOUR money until you file the tax return, when you can lower your withholding throught out the year and YOU have the use of that money.

Keep in mind everyone's tax situation is different.

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Posted by Debrian2009

I'm a CPA and pretty much what everyone has posted sums it up.

Putting single versus married on your W-4 means they will withhold more taxes. Depending on your overall tax situation, you may get a refund, or not, depending on your income versus payments.

For example, I have extra withholding because I have other income that has no withholding. So the single status and extra withholding helps cover the taxes on that income.

But if you and DH tend to both get refunds, if you want use of your money throughout the year, versus that refund, then you can always mark married.

Think of it this way: why should you let the government hold onto YOUR money until you file the tax return, when you can lower your withholding throught out the year and YOU have the use of that money.

Keep in mind everyone's tax situation is different.

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Thanks - Great info

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Posted by Debrian2009

I'm a CPA and pretty much what everyone has posted sums it up.

Putting single versus married on your W-4 means they will withhold more taxes. Depending on your overall tax situation, you may get a refund, or not, depending on your income versus payments.

For example, I have extra withholding because I have other income that has no withholding. So the single status and extra withholding helps cover the taxes on that income.

But if you and DH tend to both get refunds, if you want use of your money throughout the year, versus that refund, then you can always mark married.

Think of it this way: why should you let the government hold onto YOUR money until you file the tax return, when you can lower your withholding throught out the year and YOU have the use of that money.

Keep in mind everyone's tax situation is different.

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This is how I feel as well, its not like they pay you interest on it! I claim single and 1. If my accoutant tells me to change it when I go to do my taxes I will. But until then, no way jose!

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Posted by KittyGags

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Posted by Debrian2009

I'm a CPA and pretty much what everyone has posted sums it up.

Putting single versus married on your W-4 means they will withhold more taxes. Depending on your overall tax situation, you may get a refund, or not, depending on your income versus payments.

For example, I have extra withholding because I have other income that has no withholding. So the single status and extra withholding helps cover the taxes on that income.

But if you and DH tend to both get refunds, if you want use of your money throughout the year, versus that refund, then you can always mark married.

Think of it this way: why should you let the government hold onto YOUR money until you file the tax return, when you can lower your withholding throught out the year and YOU have the use of that money.

Keep in mind everyone's tax situation is different.

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This is how I feel as well, its not like they pay you interest on it! I claim single and 1. If my accoutant tells me to change it when I go to do my taxes I will. But until then, no way jose!

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+

Totally Agree!!! Plus when you have 2 houses and schoo, etc .. I always get money back!! It works to my favor.. And I like what I get!!

It depends on when u rather have the money. If you claim one, then the city/state takes out less taxes b/c it's showing that you're claiming for one person or more (if you have children you are providing support or claim as dependent). However, at the end of the year when you pay your taxes, you get less tax return. If you claim 0, the city takes out more cut from your paycheck and you get more on your tax return. Honestly, I think it's better to claim 1+ (depending on household). They take out less tax now so you get more on your paycheck. Keep in mind that the city/state always gives back a lot less than expected on tax return esp if you don't fall in the low income household. I was suppose to get back close to 2K last year and combined with my husband, we only received 1200. Just claim the number of your household, (1 for yourself, or # of children + incl yourself) and get more outta your paycheck!

My acccountant said to file 'married but tax at single status' because we dont have kids.

I'm terrified of owing so I really didnt ask any questions. I completely understand the idea of wanting to make your money make money and so you should keep it as early as possible, but frankly, its not worth the anxiety of waiting for a tax bill every year for me.

JMO.