Yes, you definitely need to update your W-4 forms. Especially because IRS significantly redesigned the Form W-4 (Employee's Withholding Certificate) in 2020 to align with the Tax Cuts and Jobs Act of 2017.
1. If it's just the two of you and no dependents, you can't claim two exemptions. Well actually the exemption box does not exist on the new Form W-4.
2. Let's start with Step 1: Choose your filing status. You can each choose to check the box for Single or Married filing separately. If you check Married filing jointly, please make sure to check the box in Step 2c for multiple jobs.
3. Do you have dependents, even if you do, you can choose to leave Step 3 blank. This way you will have more withholding taken out.
4. Make sure to enter in Step 4a if you have additional income (that has no withholdings). You can choose to leave the Step 4b blank even if you itemize. Finally, if all this is already done correctly, then use the Step 4c "Extra withholding" as catch all situation. You can divide the balance due amount in the remaining pay periods and enter there to be taken out from each paycheck. Little bit each paycheck doesn't hurt as much as owing $2000-3000 all together at the tax time.
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