Completing New W-4 Forms for (2) Jobs & Filing Jointly

[Peta23]

My wife and I both work, and file our taxes jointly, but we haven't yet filled out "new" W-4s. When filing our taxes for 2022, my income generated a refund, but then hers changed it to a payment due. Following the "multiple jobs worksheet", it gives a value (roughly $260) for box #4. As I understand it, this would then go into box 4c on the W-4 for the higher paying job (mine), and the W-4 for the lower paying job (hers) would have all zeros in steps 3 & 4. This seems backwards to me, as my income did not cause a payment due, but the W-4 indicates that more should be withheld from my paycheck. Is this correct or should we fill out separate (single) W-4s, but still file our taxes jointly?

[Cindy4]

Hi Pete23!

The extra withholding amount needed can be distributed however works best for you and your wife, as long as your are filing Married Filing Jointly.  The combined income is determining your marginal tax bracket.  Her withholding may have been insufficient for the higher tax bracket of the combined income, but it's really the total taxable income that determines the marginal rate.   The additional $260 can be split up between both of your W-4s on step 4(c), or either one of you can take the entire amount, as long as you don't filing Married Filing Separately.  It's rare for Married Filing Separately to be more advantageous.  You are correct that if you both choose the Single filing status on your W-4s, it will generate greater withholding, but since you have been through the calculations and know the specific amount that will be beneficial, it's best to go with that.

Hope this helps!

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[OpeA1]

Hello!

Yes, what you stated is correct; the new W-4 is different from the old one and seems rather confusing to most. Box 4c, as you mentioned, can be used to put in any (extra) additional amount  you want to add to the withholding currently been withheld. Also, filing jointly is always the best alternative to get the greatest tax calculation on your return.

Thank you for using TurboTax!

[Peta23]

Thank you both for the responses!

I was unaware that I could put the 4c value on either W-4, so I might try that on my wife's (lower paying job), since it seemed like hers was causing a balance due.

I tried the "W-4 Calculator" on the TurboTax website, and while it doesn't exactly match the value I calculated on the W-4 itself, it does say that we're projected to owe taxes again for 2023. Can I update the W-4s for June (i.e. update them now) and check at the end of the month to make sure they are working properly?