Filing jointly with a dependant. As soon as I add my spouse's income we go from a return to a significant amount owed. My wife is a police officer and does not pay SS tax. Does that have an affect on this? It is the only thing that is different.

[webrand-jerad]

We both may roughly the same within $500. She actually pays more in federal taxes. As soon as I add her income we owe... a lot. It says she did not pay enough. How or what can I do to lessen this tax burden. Is she being penalized for not paying into Social Security as a public employee?

[Coleen3 · Accepted solution]

What is withheld for social security has no bearing on a refund or balance due.

This happens frequently with married couples who by themselves are taxed at a lower rate but are pushed into a higher rate with the second income. Make sure you both have zero on your W-4 at work and you may have to ask for an additional amount to be withheld over and above that. The exemption you put on your individual W-4 tells your employer how much to withhold based on weekly or bi-weekly income. The table can't possibly take into account that there is a second income and together all the income is taxed at a higher rate.