Anyone good with taxes? Advice appreciated.

[wienkeg]

With Federal You are exempt because the amount of your exemptions by claiming 3 is more than the taxes you would owe. It happens because the exemptions are a set amount and don't vary with income, so if your income is lower, you don't owe anything. You should be fine at the end of the year with the Feds. I'm not sure what Illinois tax laws are, but I would think you would be safe with claiming 2.

This.

Best guess, you will get something back at year end from the Feds. Depends on your wife, and other deductions, etc.

My suggestion is just fill out the w-4 form the way it's written, and you'll generally come out ok. If you really want to double check, some online tax prep software is free (taxslayer comes to mind, or go to irs look for freefile). You can always put your income/exemptions/deductions into it for 2012, see what it says. I don't think there will be many major changes for 2013.

Goodluck, taxes are tricky! As for Ill. not familiar, same thing though, fill out the state witholding form the way written, and usually come out ok.