Tax Planning/w4 status
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??
The best way to handle the W4 is to take the deduction that matches how many people live in your house and see how that works next spring when you do your taxes. So, if you have a child living with you (head of household) I would take 2 deductions. If it is just you then only take one (single). If you get too big a refund next April then you can increase the number of deductions by one - or since you'll have some history - you can tell payroll exactly how much to take out in dollars to make it come out "even." You can always change your W4 during the year if you are not happy with the result, just go into payroll or HR and make the request. The W4 is just your employer's way of helping collect your taxes so you don't have to pay it all on April 15th.