Yes, the instructions are a bit convoluted.
The calculation of your wife's maximum contribution is done before the allocation of the family limit between spouses. With none of the family limit allocated to you, your wife's limit would be $6,475, the greater of the $6,475 calculated using the worksheet or $4,850 under the last month rule. The portion of the family limit that is allocated to you, $3,229, must then be subtracted from $6,475, resulting in a maximum contribution for your wife of $3,246.
This answer has been verified for accuracy by an Intuit expert employee
