Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Two incomes is better than one when it comes to withholding?

I'm sahm and my dh makes about 65,000 a year before taxes. About $25.000 goes to the taxes. So about $40,000 is what actually pays for our expenses.
My friends is a working mom and makes $22,000 a year before taxes (I know because we had had government jobs ), her husband right know makes about 35,000. They both make about 57,000 but they actually get too keep more after taxes. I hope that I had explained my question well. Thank you.

 
Anonymous

Asked by Anonymous at 11:27 AM on Jun. 22, 2010 in Money & Work

This question is closed.
Answers (8)
  • So it could be one of a few things:
    1.) You are over paying in taxes (do you get huge refunds?)
    2.) You are calling things taxes that aren't.
    3.) You get more money a month than you think you do- or he makes less than you think he does.
    4.) You don't have the deductions available that the other family does.
    5.) You do have those deductions, and you're not filing your taxes correctly.
    Anonymous

    Answer by Anonymous at 5:32 PM on Jun. 22, 2010

  • Is this Federal Taxes? You guys probably get more than they do back in taxes. But then also part of it will depend on your deductions, how many kids you have, whether or not you file married filing jointly- if you contribute to a 401K, or an IRA, donate to charity etc.

    But to answer your general question, all things the same- if you make more, you make more. You'll pay a slightly higher percent of your income to taxes, but it's not going to drop your income below someone that makes less than you.

    Anyway 2 incomes doesn't change your tax levels. The way you file, the available deductions to you, your total income, all determine how much you pay in Federal income taxes.
    Anonymous

    Answer by Anonymous at 11:37 AM on Jun. 22, 2010

  • Anon

    thanks. coincidentally we both have two children. And as I said before these are government/city jobs. op
    Anonymous

    Answer by Anonymous at 11:40 AM on Jun. 22, 2010

  • How much money they take home and how much is withheld is not only depended on income but the number of claims a person has. For example my husband on the tax papers to his employer has 0 that means MORE money is withheld every pay check then say someone that makes the same amount but claims 3 on the tax paper for the employer. The lower your withholding number the MORE that is withheld on your paycheck. Of course when we file our taxes we give the proper numbers for dependents and exceptions. I've heard it recommended that if you have 4 people in your home for example that it's best to say 3 or less on the paperwork that you fill out for tax withholdings with your employer.

    Do you know if your friend has the same number of withholdings as you do when it comes to the paper work for the employer? Do you know what I'm even talking about?
    SAHMinIL2

    Answer by SAHMinIL2 at 11:42 AM on Jun. 22, 2010

  • I've heard it recommended that if you have 4 people in your home for example that it's best to say 3 or less on the paperwork that you fill out for tax withholdings with your employer.

    Thanks for the tip. op
    Anonymous

    Answer by Anonymous at 11:47 AM on Jun. 22, 2010

  • It isn't necessarily better to only claim 3 on your W4. It is better to do the math and figure it out. If you have a mortgage you may be able to claim 5! Do the MATH. Don't give the government an interest free loan.

    It isn't about withholding. It is about total tax paid. It is about taxable income and filing status. Just read the columns!
    Anonymous

    Answer by Anonymous at 1:04 PM on Jun. 22, 2010

  • The two families probably do not have identical deductions.
    rkoloms

    Answer by rkoloms at 2:50 PM on Jun. 22, 2010

  • Anon :37' - It's dependent on other things too though- not just the number of children.

    I mean deductions- like if more than 7.5% of your income is spent on medical expenses, you can use that as a tax deduction. Money contributed to an IRA, money and/or items donated to charity is tax deductible. The interest on your mortgage payments on your primary resident are tax deductible.

    Also, you might be calling things taxes that aren't actually taxes. Does your husband contribute to a 401K? That would go out of his pay check before you get it. Or if he has a deductible for health, life or disability insurance- that might all come out of his pay check before he actually brings it home.
    Anonymous

    Answer by Anonymous at 5:30 PM on Jun. 22, 2010

close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN