W-4 Confusion- help!

Guys,

Can anyone give me any basic advice on filling in the W4 - I am so afraid I'll end up owing that I just don't know what to fill in. I don't even really know the difference between married filing separately or jointly.

The part that concerns me is the part where it says;

"for complete accuracy.....if you have more than one job, or are married and you and your spouse both work and the combined earnings from all jobs exceed $35000, complete the two-earner/two-job worksheet to avoid having too little tax held"

I have tried the IRS site, but it doesn't help if you don't understand it to begin with! Any general advice welcome

If you follow the instructions very carefully, people often end up having too little withheld, as the instructions are not accurate enough.

It's safest to choose 0 exemptions and choose "married but withhold at the higher single rate".  For 75%+ of tax payers, this results in a refund.  For a more accurate calculation, see the US tax accountant who does your US tax returns. 

Liz- thank you so much for responding to me. My instinct was telling me something would be wrong if I just followed the instructions and I most certainly don't want to end up owing anything.

I didn't start work til February this year - so now I have to figure out the filing taxes thing, but I am going to use Turbo Tax, a lot of expats have used it and said they like how it makes things so easy (unless you think otherwise?), so I will give it a go.

Thank you again

If you follow the instructions very carefully, people often end up having too little withheld, as the instructions are not accurate enough.

It's safest to choose 0 exemptions and choose "married but withhold at the higher single rate".  For 75%+ of tax payers, this results in a refund.  For a more accurate calculation, see the US tax accountant who does your US tax returns. 

It's a personal preference, but I would rather have too little withheld. I'd rather keep my tax money till the end of the year, during which time I can invest it and earn extra income, than have the taxman take it as soon as I get paid.

Some people get excited by getting a big refund, but the fact is that it doesn't increase your total yearly income; you are just having your money taken from you earlier in the year.  You just have to remember to have enough money in your bank account so you will be able to pay what you owe when it's time. (This, of course, assumes that the person is capable of budgeting and will not automatically spend their entire paycheck.)

Actually, there is a part of me that thinks that's the way to go Sweetpeach..........but not this year, whilst our incomes and fortunes are fluctuating (not necessarily a question of spending it or not budgeting) for this first year in the US, I am terrified of being faced with ANY bill from the IRS.

Thanks for the alternative view though, because that might help some people view it differently.