I received a market adjustment to my salary a few weeks ago, which increased my income. I already have my W4 set for 2 exemptions (myself, spouse). No kids as dependents any longer. My employer has explained that the new W4 doesn't really focus on exemptions any longer, so not much to change there. In using the IRS tax withholding calculator, it was suggested to take out an additional $100/paycheck to help decrease my tax liability. Also, my husband receives Social Security and does not have Federal tax taken out, therefore, we end up paying about $900 at tax time. Best option is to have the extra $100/paycheck taken out so I don't increase my tax liability any more than it already is?
