I just started a new job and I had to fill out the W4 form. I am confused about claiming number of allowances.
Here is my household:
- Wife (Homemaker)
- Child 1
- Child 2
I make around 110-115K a year and live in Texas.
W4 form has the following question:
Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2)
I added everything up and it came out to be 8 allowances that I can claim. The HR person told me that claiming 8 allowances might mean that you do not pay anything in tax and in the end I end up owing money to Uncle Sam.
What is the best way to come up with claiming the allowances? What things I should consider.