Spousal Federal withholdings on our W4- both earn Full Time Wages

[daddykinz27]

Me and My Spouse have full time jobs- we earned a combined income of $244,732 in 2023. We have a now 18 year old dependent that we pay out of pocket for College expenses ($8K) annually. We owed $11K in Federal Taxes because we did not pay enough Federal Taxes in 2023. I changed my exemptions to '0' in June of 2023 and my husband changed his to '1' from '0' exemptions. I believe this offset why we owe. My question is:

1. should we both claim '0'? 

2. should we pay an additional amount of money toward or taxes during the year?

3. We both plan to get an 3% salary raise this year, and I may work overtime, should we make any changes to our withholding (W4) when these 2 instances occur?

[CatinaT1]

As part of the Tax Cuts and Jobs Act, the IRS and Treasury adjusted the tax withholding tables, which affects the amount of income taxes withheld from your pay and exemptions are no longer applicable.  

My suggestion is to use the IRS Tax Withholding Estimator here.   

[daddykinz27]

Hi @CatinaT1 we both used that  IRS tool and the verbiage is quite confusing. Is it safe to say that we should both be at '0' exemptions? My husband said that she entered '1' exemption to count for 'himself' which I don't is best for our situation.   

[CatinaT1]

I would fill out both of your W4's this way - Married Filing Joint, be sure you both check the box in step 2. Monitor your withholding to be sure they are withholding enough and if not add an extra amount to be withheld on Line 4C.

[daddykinz27]

Hi @CatinaT1 one last question- Does the IRS help with this- their office is located in my building. Could I  request an in person appointment to assist with the completion of my W4? Does the withholdings calculator account for money put into a pre-tax retirement accounts and pre-tax deductions- commuter expenses that come off the top of your income. (ex: 401K)

[CatinaT1]

I would assume the IRS would help you with this. The IRS withholding calculator I suggested earlier should account for all those things.