topic started a new job and need to make sure my W4 withholdings are correct in Get your taxes done using TurboTax

started a new job and need to make sure my W4 withholdings are correct

ALC71 — Wed, 31 Mar 2021 20:00:34 GMT

Hi, I started a new job and want to make sure my W4 withholdings are correct. I'll be married filing jointly with me and my spouse each working and we have one dependent. How many withholdings should we each have? Thanks.

Re: started a new job and need to make sure my W4 withholdings are correct

RayW7 — Wed, 31 Mar 2021 20:08:49 GMT

TurboTax has a handy W4 calculator that should help with this decision,

W-4 Withholding Calculator - Free IRS W-4 ... - TurboTax

Re: started a new job and need to make sure my W4 withholdings are correct

ALC71 — Wed, 31 Mar 2021 21:35:05 GMT

Thanks. I used the tool and am not sure how to interpret it. I have 2 questions:

1. It shows a 2022 estimated payment with a negative amount (and zero for my paycheck impact). Does this mean the tool estimates I get a refund? Or does a negative estimated payment mean I owe taxes?

2. It shows I should claim 3 dependents on my W4, presumably for me, my spouse, and my child. If me and my spouse are married filing jointly and I claim 1 dependent and he claims 2 dependents, is that equal to the 3 dependents this tool recommends?

Re: started a new job and need to make sure my W4 withholdings are correct

SamS1 — Wed, 31 Mar 2021 21:59:30 GMT

Ray made a great recommendation. Here is the W-4 tool from IRS.gov. Not sure if you saw the YouTube video with instructions on using the tool. Click here to watch. I would go back through tool after reviewing the video. It should answer your questions on the negative amounts.

As a rule of thumb, the spouse with the higher income should take fewer exemptions on their W-4. Remember, on your tax return you are combining incomes that will push you up into higher tax rates. Having the higher earner withhold more tax will offset some of the additional tax from combining both your incomes.

Re: started a new job and need to make sure my W4 withholdings are correct

ALC71 — Wed, 31 Mar 2021 22:23:23 GMT

not sure what the difference is between exemptions and deductions... on my W4 I just filled out for my new job I am taking 1 allowance for regular withholding. My spouse has 2. Would this equal the 3 the tool recommends? In other words, are the allowances additive between me and my spouse when we're married filing jointly?

Re: started a new job and need to make sure my W4 withholdings are correct

SamS1 — Wed, 31 Mar 2021 22:45:22 GMT

Yes. You can split the 3. Note the withholding tool is to get you as close to zero tax due/zero refund. If you want a refund in 2021, you should consider dropping to 1 allowance for each of you.

Re: started a new job and need to make sure my W4 withholdings are correct

ALC71 — Wed, 31 Mar 2021 22:59:29 GMT

dropping to one would withhold less taxes, right? then we might owe taxes?

Re: started a new job and need to make sure my W4 withholdings are correct

npierson7 — Wed, 31 Mar 2021 23:07:05 GMT

You can check out if you have enough withholdings with the TurboTax withholdings calculator:

W-4 withholding calculator