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How should my wife claim for taxes?
- Thread starter E6286
- Start date
BAH not taxed
FYI BAH is not taxable income, only regular pay is. As far as the claiming of 1 or zero, you need to see how much you two will make in the next year 06. If you both claim 1 you may owe Uncle Sam come next year. Most conservative CPA's will advise that both claim zero or a combination of zero for the higher income and 1 for the lesser or vise versa. The idea is not to over pay and let Uncle Sam gain on your behalf.
FYI BAH is not taxable income, only regular pay is. As far as the claiming of 1 or zero, you need to see how much you two will make in the next year 06. If you both claim 1 you may owe Uncle Sam come next year. Most conservative CPA's will advise that both claim zero or a combination of zero for the higher income and 1 for the lesser or vise versa. The idea is not to over pay and let Uncle Sam gain on your behalf.
bennett4362
deployment sucks
E6286 said:
the more you claim (ie the higher number you put after M...) the more likely you are to owe because the less they hold per payday. if you claim M0, you're more likely to get money back because they're withholding at a higher rate. all that is, of course, generally speaking.
if both you and your wife are working full time, your best bet is to both claim M0 or M1. if only you are working, you should at least claim M1, possibly M2.
bennett4362
deployment sucks
i'm not a tax advisor or anything 
but you should be ok both claiming M1.
but you should be ok both claiming M1.
Bottom line, you can claim whatever you want now, then file as appropriate at tax time after you have seen some history of both your incomes and have done the requisite research on the best way to file. FYI, there are ALWAYS folks that will help you do your taxes on base, so make use of them if you're unsure about anything.bennett4362 said:i'm not a tax advisor or anything
Brett
Like others have said. BAH is not taxed it will not show up on your W2. I claim 0 because I like getting money back at the end of the year. It's like having a piggy bank for my wife and I (no interest). If you claim 0 on your W2 then claim 2 you and your wife on your tax return then you should get a chunk back. At least that has been my experience.
What you claim on your taxes has no bearing on what BAH (w/ or w/o deps) you get. They can be changed on your LES independently of each other (i.e. you could withhold for 0, but get BAH w/dep OR withhold for 5 and get BAH w/o dep in which case you are probably getting screwed or withholding too much.)
bennett4362
deployment sucks
Hudson said:
i don't understand why people like to do this...instead of taking your money and investing in, at minimum, a savings account/money market where you can at least accrue a little bit of change every month, you let the government keep what you're entitled to and make their own dime with it every month...essentially you're giving the government an interest free loan...why would you do that?
openbah
I'm not lazy, I'm disabled.
Because "it's like having a piggy bank," I actually know lots of people who do the same thing. They like the feeling when they get all that money at the end of the year.
I've given up trying to convince people that they should be investing their money throughout the year and not letting the government make interest on it. To each his own...
I've given up trying to convince people that they should be investing their money throughout the year and not letting the government make interest on it. To each his own...