According to the IRS's online calculator, I should write "EXEMPT". According to the W4 worksheet, I should write in 11. I want to pay the least taxes without owing at the end of the year. Here is my situation.
For the first half of the year (Jan-July), I lived and worked abroad. No federal taxes. I have been abroad for 7 years. Now that I am back in the states, I will be paying taxes from now until the end of the year on my new income. I am the only one who works. I am married, filing jointly, and have 2 children who will be taking advantage of the dependent care credit.
So, what is the correct number of allowances, or am I truly exempt?