FYI ... there are no more "allowances" on the new W-4 forms. And one of you should be choosing the SINGLE/MFS option... usually the one with the lower income. If you have kids only one of you should claim them although to be safe you each can simply choose the SINGLE/MFS option and adjust later if you have way too much withheld. Under no circumstance should you both claim MARRIED and both claim any dependents (if you have any).
Use the Tax Withholding Estimator on the IRS web site to figure out what you and your spouse should each put on the W-4 forms that you give to your employers. It's much easier than using the worksheets on the form. It will let you adjust your withholding to get the approximate refund amount that you want.
