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Hoots : Worked abroad for first 7 months. How many allowances to put on my W4? According to the IRS's online calculator, I should write "EXEMPT". According to the W4 worksheet, I should write in 11. I want to pay the least taxes - freshhoot.com

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Worked abroad for first 7 months. How many allowances to put on my W4?
According to the IRS's online calculator, I should write "EXEMPT". According to the W4 worksheet, I should write in 11. I want to pay the least taxes without owing at the end of the year. Here is my situation.

For the first half of the year (Jan-July), I lived and worked abroad. No federal taxes. I have been abroad for 7 years. Now that I am back in the states, I will be paying taxes from now until the end of the year on my new income. I am the only one who works. I am married, filing jointly, and have 2 children who will be taking advantage of the dependent care credit.

So, what is the correct number of allowances, or am I truly exempt?


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Let's break this down:

1 for yourself
1 if you are married, have only one job, and spouse does not work
1 for your spouse (or enter 0)
2 for all dependents (you said you have two kids)
1 if you have at least ,000 in child care expenses (usually day care, but if spouse isn't working then you probably don't claim this)
4 to claim child tax credit (2 x 2)

Total is 10

If you don't claim ,000 in child care expenses, then it's 9. If you don't want to enter in 1 for spouse in step 3, then it's 8. I have about same income range, spouse who does not work, and two kids. No daycare. I claim 8.

W4 calculator also said for me to claim 11.


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