DH and I got married last year in 2018, and although he did update his W4 to "married", I completely forgot to do so and my Taxable Marital Status still shows single. When we file our 2018 taxes this year, we do plan to file married filing jointly.... Is my "single" taxable marital status going to be an issue?
I can go online today and get it fixed if need be.
It's been years since I looked into this, but I think single rate just means you're withholding at a higher rate, so likely going to get a bigger refund/owe less.
When H and I got married we both switched to "married but withhold at higher single rate" so we didn't owe and it always worked out for us. Leaving it as single on your w-4 doesn't effect your taxes except for withholding.
Thanks! Whew. Does anyone know if the difference between filing as single can married but withhold at higher rate?
I think single and married at higher rate are about the same. You can google the “circular e” and look at the tables to know exactly what will be withheld for different statuses and with different amounts of allowances
Thanks! Whew. Does anyone know if the difference between filing as single can married but withhold at higher rate?
They are the same.
Right. I still withhold at single and so does my H, with extra withholding on top of that. I am irrationally opposed to paying come tax time and if it means I grossly over-withhold and get a refund, that's my preference.
Thanks! Whew. Does anyone know if the difference between filing as single can married but withhold at higher rate?
I'm no tax expert, but this is how I understand it: Single vs. married vs. "married but withhold at higher rate" are W4 options for withholding -- it's to get you close to what you owe on your taxes but whatever you owe from filing you still owe -- if it's more than you withheld you get a refund, and if it is less you owe. We both do "Married, but withhold at higher rate" PLUS withhold extra and we still owed last year.
For actual taxes, you choose your filing option, which is Single, Married filing Jointly, or Married filing Separately. I think most married couples file jointly, unless one person has huge medical expenses or something.
Single just means they withhold more. Depending on your situation you might actually be better off. Our first year we both changed to married got hit with a huge tax bill because we didn’t withhold enough. So now h withholds married and I do single and we get a small refund most years.
Ditto PPs. If you are both working, you may want to keep “single” since “married” has a lower withholding and often does not withhold enough taxes for dual income couples.