Your taxes will be what your taxes will be. If you and your husband have steady, predictable income (rather than having it vary wildly due to bonuses or commissions), and you haven't had huge increases in pay, then your taxes next year will be roughly what they were this year. The question you need to ask is: Are we having a monthly amount withheld that at the end of the year will total about what our taxes were last year? What you should strive for is to be just a little over or a little under. Right now you say you're having an extra $5280 in income from reducing withholding. How much was your refund last year? If it's less than this, you need to make some adjustments to get these two numbers into rough alignment. While it's ok to under-withhold and owe money, it becomes a problem if you are too aggressive, because it can trigger penalties, additional forms, and mandatory quarterly payments the following tax year if you don't have at least 90% of estimated taxes withheld, as I recall. If the math is too much for you, have your financial planner figure out how much should be withheld. You can specify this amount on the W-4, rather than simply changing the exemptions. Right now it sounds like you're guessing at some of this, and you should really try to get it right.

I'm not quite sure you're in the best possible position just yet. I'm a freelancer, and this is the way things work for me: All of my clients have a W9 form on file for me. The clients use the W9 when they're generating the 1099 form they send to me. If I were you, my first question to my friend would be: do you have paperwork on file for me, like a W9? They should have some sort of paperwork for you, even if you're not a regular sort of employee. I would not fill out my taxes without a 1099 in hand, because I've had clients make mistakes. I even once had a company that had misplaced my W9 and didn't send me a 1099 in January at all. I realized I didn't have their paperwork and was able to get it in time for the April 15th filing. Waiting for the 1099 enables you be confident that you're checking your records against what they're reporting and that you're both on the same page. Third is that as a freelancer who does not have taxes withheld throughout the year, I have to pay estimated quarterly taxes myself. The Federal due dates are April 15, June 15, September 15, and January 15. If you need to pay quarterly taxes and haven't been doing so all along, you're likely going to have to pay a penalty. Your situation may differ from mine, but I think in your shoes, I would want the tax situation straightened out. It sounds a little muddled right now.

You need to talk to a CPA/lawyer specializing in this type of situation.

I'm going to add a little wisdom here based on my experience. I've been a tax preparer for 14 years, completed over 3500 returns, and taken more than 500 hours of training. I've had experience with various types of tax organizations. Deciding who to go to to prepare your taxes can be confusing. Let's change that! Here is an explanation of the differences of a CPA, tax preparer, and an EA -- and -- some information about how each of them work. I hope this will help you pick the one that best works for you! ~ An Enrolled Agent (EA) is a designation by the IRS that the individual has passed a knowledge exam on taxes that allows the EA to represent a taxpayer infront of the IRS. An Enrolled Agent may be a tax preparer or a CPA. Not all tax preparers or CPA's are Enrolled Agents. ~ A CPA is Certified Public Accountant. They received this designation by passing knowledge exams on numerous accounting areas. Many CPA's specialize in a specific area of accounting. If you go to a CPA make sure they specialize in taxes. Not all CPA's specialize in taxes or are Enrolled Agents. The CPA must be an Enrolled Agent to represent you infront of the IRS. ~ Tax preparers are trained to prepare taxes. Often they have a educational background or work in accounting but not necessarily. Their knowledge varies based on the number of years they have prepared taxes and educational courses they have taken. Tax preparers at H&R Block begin with a basic training course of 66 hours of class time plus additional hours for updates on new tax law changes and on-the-job training hours. Students of the basic training course must pass a final exam to qualify to work for H&R Block. Experienced H&R Block tax preparers are required to complete a minimum of 30 hours of training each year plus additional hours for updates on new tax law changes. Many tax preparers at H&R Block and smaller tax prep firms are Enrolled Agents. ~ H&R Block charges are determined by the forms used and what is filled in on the form. If you require H&R Block to do bookkeeping (you know that brown bag of receipts) they will charge an additional hourly fee. ~ Most CPA's charge on an hourly basis. From my personal experience the cost of going to a CPA is about 2X the cost of going to H&R Block. Some local firms are even less but may not have an EA or year-around office to help if there is a problem. ~ If you go to H&R Block you will sit with a tax preparer as they prepare your return. The preparer will ask lots of questions, answer questions, and make suggestions for future tax savings. Unless there is a complex tax issue that needs to be researched or missing information, the preparer will complete your return while you are there and you can take it with you when you go. ~ If you go to a CPA they may have you sit with them as they prepare and complete your return -or- they may just have you leave the tax information and call you to pick-up the return when it is completed. ~ Many CPA's hire tax preparers such as myself (often current or former H&R Block preparers) to complete the return. The CPA reviews the completed return and signs it as the preparer and presents it to the client. This is very common in our area especially with larger accounting firms. ~ Tax laws are complex and change each year. I've amended returns prepared by individuals, H&R Block, other tax prep firms, and CPA's. Anyone preparing your return can make a mistake. ~ If you prepare your own taxes on-line be sure to print a copy for your records. The on-line programs are great for simple returns (such as those with just W2's and interest). ~ If you want to purchase tax software Turbo Tax and Tax Cut are the most popular. Be sure to print a copy of your return for your records. The software is a great choice for a return that is not complex and if you are willing to take the time to research items that you are not sure of. ~ If you choose to go to H&R Block or a smaller tax firm call and request an appointment with an experienced preparer and let them know you would like a preparer that will spend time reviewing and explaining your return in detail. They will schedule you with a preparer that meets your needs if they know when you call for an appointment. ~ To find a good CPA or tax preparer ask friends and family for recommendations. Ask them why they like their preparer and see if it matches what your looking for. If you find a someone you like then call next year to schedule an appointment specifically with that person. As for the original poster ... from her explanation they have a rather simple return. If she felt confident to do her own return she could go online and do it. It sounds as though she wants to learn but would like some help this year so going to a professional might be a good idea. Since the return seems to be rather simple I think an experienced tax preparer would be less expensive than a CPA. I'd suggest calling for an appointment in advance and requesting that the appointment be scheduled with an experienced tax preparer that will be willing to answer lots of questions.