What should I claim?

[keniz138]

What is the name of your state?
Rhode Island

I recently became married as well as a homeowner. My wife and I both work, combined income over 100k. I am wondering what I should have as my filing status at work for both federal and state if I am looking for at least a small refund for 2005. I am thinking Married, 0?

Thoughts?

 

[Snipes5]

You should both claim married but withhold at higher single rate, and both should list 0.

You may also want to have extra withholding as well, unless you have children.

There are a couple of things you can do to reduce your tax. Maximize any 401K plans available to you and your wife. Also, you might consider investing in a piece of rental property.

Snipes