Ask:
Hopefully someone can answer this for me...
DH wants to start claiming 2 instead of 1 on his taxes for work to bring in more. With 2 kids in daycare plus that tax credit, how will this affect our taxes when we file next year??
Does that make a huge difference on what you get back or have to pay?? I know it varies based on your tax bracket, but I was just looking for a approximate.
Answer:
The IRS website has tax withholding calculators and they tell you how much you should claim basid on your interest. Ideally you should be getting either a very smal refund or be making a very small payments. Getting a big refund from the IRS does not make since money wise because it would be used better to have it not taken from your paycheck and instread put towards debt or a savings where it will ethier save you money By not having to pay as much interest or earn you money by gaining interest. Having the IRS hold it for you is doing nothing but forcing you to save it if you are really bad at spending money!