Get your taxes done using TurboTax

Terri Lynn

You can't be both "Married" and "Head of Household" for federal tax purposes. You would either file as Married Filing Jointly (which you've been doing), or if certain conditions are met (e.g., your spouse doesn't live in the home for the last 6 months of the year and you provide more than half the cost of keeping up a home for a qualifying child), you might qualify for Head of Household, but then you wouldn't be "Married Filing Jointly."

Assuming your primary filing status is Married Filing Jointly with your spouse, and you claim 2 children, here's how to approach your W-4:

Use the IRS Tax Withholding Estimator as soon as possible. This is critical with two working spouses and dependents. It will guide you through adding both your income and your spouse's income (even if your spouse works and has no tax withheld, that income still affects your joint tax liability), plus your children's information for potential tax credits.

Find it here: https://www.irs.gov/individuals/tax-withholding-estimator

Adjust W-4s for Both Spouses. The estimator will provide specific recommendations for both your W-4 and your spouse's W-4. One common strategy for married couples where both work is to:

Check the box in Step 2(c) on both W-4s. This tells each employer to withhold taxes at a higher "single" rate, which is often more accurate for combined incomes.
Enter the total amount for dependent credits in Step 3 on one spouse's W-4 only. Do not split it between W-4s, and definitely not on both. For 2 children, the Child Tax Credit could be up to $2,000 per child, or $4,000 total (for 2024), but this is a credit that reduces your tax dollar-for-dollar, so it effectively means less tax needs to be withheld. The estimator will help you allocate this.

Consider Additional Withholding (Step 4c) as a Fine-Tune. After using the estimator and completing Steps 2 and 3, if the estimator still suggests a small under-withholding, or you want to ensure a refund, you can add an extra dollar amount in Step 4(c) on one of your W-4s.

Your previous advice about aiming for $275-$325 federal tax withholding per paycheck was based on a single filer. With a spouse and two children, your overall tax situation (standard deduction and potential credits) is vastly different.

You're right to clarify your filing status! Being married with dependents significantly impacts your tax situation compared to a single filer.

Here's how to approach the withholding for your specific situation (Married Filing Jointly, 2 dependents, $72,000 salary for your job, assuming your spouse also has income):

Use the IRS Tax Withholding Estimator (Mandatory for Accuracy)

Go to: https://www.irs.gov/individuals/tax-withholding-estimator
Why: This tool is designed for situations exactly like yours (multiple incomes, dependents). It will account for:

Both your incomes: It will factor in your $72,000 and your spouse's income.
Married Filing Jointly standard deduction: For 2024, this is $29,200.
Child Tax Credit: For two qualifying children, this is up to $2,000 per child, or $4,000 total for 2024. This credit directly reduces your tax liability.
Any other income, deductions, or credits specific to your household.

Outcome: The estimator will give you a precise recommendation on how to fill out both your W-4s (your employer's and your spouse's employer's) to ensure you withhold the correct amount and avoid owing a large sum or getting a huge refund.

General Calculation (for illustration, but use the estimator for exact figures):

Let's assume your $72,000 is your only income for the household, and you take the standard deduction and receive the full Child Tax Credit. This is an oversimplification, as your spouse's income would definitely affect this.

Gross Income (your job): $72,000
Standard Deduction (MFJ 2024): $29,200
Estimated Taxable Income: $72,000 - $29,200 = $42,800
Apply 2024 MFJ Tax Brackets to $42,800:

10% bracket: $0 to $23,200 = $2,320
12% bracket: $23,201 to $42,800 (remaining $19,599) = $2,351.88
Subtotal Federal Income Tax: $2,320 + $2,351.88 = $4,671.88

Subtract Child Tax Credit:

$4,671.88 (estimated tax) - $4,000 (2 children x $2,000 CTC) = $671.88

Estimated Annual Federal Income Tax After Credits (based on your income only:( Approximately $672
Per Paycheck (Bi-weekly, 26 paychecks): $672 / 26 ≈ $25.85

**Important

This is extremely simplified. It does not account for your spouse's income, which will significantly increase your overall household taxable income and push you into higher tax brackets.
It assumes full eligibility for the Child Tax Credit based on income thresholds (which are quite generous for MFJ).
Withholding tables are complex. Employers use IRS-provided tables and your W-4 entries to determine actual withholding, which isn't a simple division of your estimated annual tax.

Helpful Links:

Please feel free to reach backout again with any additional questions or concerns you might have!

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Terri Lynn