Tax Planning/w4

Advertisement


Question
Owen,

Thank you for volunteering your time on this site.  I recently was hired into a new role and I am in the process of completing my onboarding docs including my w4 for the state of Maryland. Naturally, like most people I'd like to maximize my take home pay and i noticed that under status the options for MD are Single (I am divorced), Married (surviving spouse or unmarried Head of Household), and Married.  I filed as Head of Household on my 2015 returns and I qualify but my question is is there an advantage to selecting this option for my w4 status??  

Many thanks,

Harry

Answer
I am unlcear about why you say "advantage".  If that is your filing status, it is perfectly OK to use it.  That status has benefits between Single and Married as far as the standard deduction is concerned.  Also, if you are asking about your Maryland status, I am not familiar with Maryland specifically.  I am only taking about the Federal level.  There is a tool you can use to determine the best number of exemptions to claim -

go to --> http://www.paycheckcity.com/ and click on "W-4 Assistant" and that should help you!

Tax Planning

All Answers


Answers by Expert:


Ask Experts

Volunteer


OWEN S. ARNOFF, EA

Expertise

As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.

Experience

I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

Organizations
National Association of Tax Professionals

Publications
http://www.amazon.com/Owen-Arnoff/e/B00BLRIZNU/ref=ntt_dp_epwbk_2

Education/Credentials
Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

©2016 About.com. All rights reserved.