My wife and I had a large tax bill this past year, so we wanted to make sure our W-4 forms are filled out correctly going forward. Based on the IRS Two-Earners/Dual Income worksheet, our household is responsible for $10,010 in additional withholding (beyond allowances) for the 2019 tax year. This is equal to $385 per pay period, over 26 pay periods.
My question: For this additional withholding, do my wife and I split this amount equally in our respective W-4's, or does it fall on the higher earner? I'm currently paying 100% of it, but my paycheck is taking a beating, so trying to figure out if I'm doing this right (or if I need to start charging my wife 😅).
Thanks!
as long as you file joint, it doesn't matter whose paycheck the withholdings come from. have it withheld as you please.
Makes no difference how you apportion the known gap. Easiest: Make one estimated payment, before 30 June. Link to current W-4 calculator: <a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/irs-withholding-calculator">https://www.irs.gov/individuals/irs-withholding-calculator</a>
Since there is no sign that the tax laws will change for 2019, you can take the amount you owed for 2018, and assuming that your own income situation does not change much, that is probably the amount you will owe next year if you don’t change your withholding. Add a minimum, you need to have that much extra taken out of your paychecks to avoid a penalty for 2019. If there is a big discrepancy between the amount you owed and the additional amount calculated on the W-4, then you might want to try calculator on the IRS website.
As long as you’re filing jointly, and aren’t planning a separation or divorce, then it doesn’t matter which paycheck pays the extra tax. Or, you could make estimated payments instead. Estimated payments are due April 15, June 15, September 15, and January 15.