Multiple jobs, and spouse increased income

[reneskelly1784]

I currently have no federal taxes coming out of my paychecks. I filled out the w-4 as suggested, and I am wondering if it may be because me and my spouse have two dependents? I also have a second job where I make less money at. That section was confusing to fill out. My husband is starting a new job next week and it will be a six figure income. We are very nervous about filling out the w-4, and owing the government next year at tax time. Please help. Thanks! 

[KarenL4]

Hi, 

Congrats on that 6-figure income!

Have you tried our free W-4 calculator.   It can handle your YTD income and the new job and can make dealing with disparate income easier.  If you are feeling uncertain and want a double check,  this Tax Caster may also be helpful.

It occurs to me that you may also be looking at bonuses in the future.  As an FYI, the standard federal withholding on supplemental payments (a bonus is a supplemental payment) is 22%.  That may or may not be enough once you consider your new tax brackets .   If your tax bracket (marginal rate) will be higher than 22%, you may be under-withheld and can consider asking the payroll department to withhold more...  

Also, you can always call a tax expert to talk in more detail if you have TurboTax live. You can reach us at 1-800-4INTUIT.

Please give a thumbs up to cheer below if this answer helps!

Best,

Karen

[RobertY]

Hi @reneskelly1784 

Please use our free W-4 calculator to help you calculate what you need to enter into you and your husband's Form W-4.

Generally, withholdings, especially federal withholdings are taken out depending on how much income you earn. Therefore, if your total earnings are below a certain threshold (usually the standard deduction), your payroll may not take out any taxes. Other factors that contribute to your withholding will be the number of dependents (especially those who qualify for the child tax credit). 

When both you and your spouse work, please pay close attention to Step 2: Multiple Jobs or Spouse Works as this will impact how much taxes are withheld in your situation.