ILLMAS Posted March 9, 2016 Report Share Posted March 9, 2016 I have a TP that is going to file MFS, her W-2 gives the number of exemptions (zero in her case) and Married. I know I am going to get an earful as to why she owes, she is also claiming her father as dependent, my question is, aren't the payroll tax tables designed to balance out at end of the year? Or by filing MFS, that is enough to throw people off? Quote Link to comment Share on other sites More sharing options...
Ringers Posted March 9, 2016 Report Share Posted March 9, 2016 I believe it is because if she claims "Married" the withholding calculation is based on the Married Filing Jointly tax brackets rather than MFS, so she goes into the higher brackets twice as fast as MFJ and even the additional dependent is not enough to recitify the situation. 3 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 9, 2016 Report Share Posted March 9, 2016 Also what is stated on the W2 is what she claim at the end not necessarily what she claimed the rest of the year. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 9, 2016 Author Report Share Posted March 9, 2016 21 minutes ago, Tax Prep by Deb said: Also what is stated on the W2 is what she claim at the end not necessarily what she claimed the rest of the year. Correct, I verified last year W-2 to make sure she didn't change exemptions. I had a couple of clients in the past say, I am claiming zero but I just had it changed on 12/31/XX.... Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 9, 2016 Report Share Posted March 9, 2016 I tell all my clients that the calculations on the W-4 form are just to use up more ink when they are printed. I use a real world approach to recommend what they should put on the W-4. Too many variables to think that the W-4 would "automatically balance out at the end of the year." 4 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 9, 2016 Report Share Posted March 9, 2016 9 minutes ago, Jack from Ohio said: I tell all my clients that the calculations on the W-4 form are just to use up more ink when they are printed. I use a real world approach to recommend what they should put on the W-4. Too many variables to think that the W-4 would "automatically balance out at the end of the year." Boy, ain't THAT the truth? Did you know that when you go thru that list, and you don't have a clue, and you wind up with Single and Six Exemptions, it really throws you off at tax time if you only have one kid and nary a deduction? My client did not know that. Well, she does now. 4 Quote Link to comment Share on other sites More sharing options...
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