Incorrect tax withholding

[dbeast53]

I changed my W-4 form to "married filing jointly" for 2023 and I noticed that federal tax withholding for 2023 was lower compared to 2022 and thus I am due a significant amount of tax to IRS for 2023. I've verified that I fall within the same tax bracket whether filing as a single individual or as part of a married couple filing jointly. Thus, I'm unsure how my marital status affected the tax bracket. Additionally, what adjustments should I make to my W-4 for 2024 to prevent encountering this issue in the future.

[DawnC]

Does your spouse also work?    If you have married filing jointly marked on multiple w-4s, you will not have enough tax withheld.   There is a section of the w-4 that allows you to adjust for multiple income situations.   Section 2 of the W-4 has instructions for situations where you have multiple jobs or your spouse works.    

You only get one standard deduction.   If you have multiple jobs and your other employer does not know about the other job, not enough tax will be withheld.   See Why does my refund drop when adding a second w-2?, specifically the part about withholding credits and how to adjust the w-4s.  

[dbeast53]

Yes, my spouse also works, and we don't hold more than one job each. Should I do 2c then? Also, how changing to "filing jointly" could have led to less tax withholding for 2023?

[DawnC]

You can adjust your withholding however you like.  Although you can request the form you gave to your employer, your employer will just have you fill out another one.   You can print a blank form from the IRS or ask your employer for one.     Either way, give them a new form with your updated selections; you can change/update your W-4 multiple times a year if necessary.   

[dbeast53]

I updated my previous reply late. We both have one job each, how changing to "filing jointly" could have led to less tax withholding for 2023? Also, does it affect if my spouse has put single in the W-4 form and I have put married?

[RobertB4444]

When you tell your employer that you are married filing jointly you are telling them that you have an extra person as a deduction on your tax return so you won't owe as much tax for the year.  Since you won't owe as much tax for the year they take less out of your paycheck.

In your case, because you both work, you don't have an extra person.  That person is also earning money which - when added to yours - moves you into a higher tax bracket.  

You should both be withholding as 'single'.  Especially if you are married with no children.  Single takes the most money out of your paycheck and if both of you are withholding that way should cover the taxes due.

@dbisht53 

[dbeast53]

Thanks for the reply. Can I withhold as single in my W-4 but still file the tax jointly?

[DawnC]

Yes, you can.   That is what my husband and I do.   

[VolvoGirl]

Yes.  I was going to post that.  I'm married but when I worked I always put Single at work to have more taken out and even had an extra amount taken out.  That doesn't have to match your actual tax return.