When you and your spouse are in a top combined federal tax bracket and want to avoid a large year-end payment, the best approach is to ensure that enough tax is withheld from each of your paychecks to account for your combined income.
The key to this for high-income, two-earner households is to accurately use the IRS Tax Withholding Estimator and pay close attention to Step 2 (Multiple Jobs or Spouse Works) and Step 4(c) (Extra Withholding) on the Form W-4.
Use the IRS Tax Withholding Estimator:
3. Specify Additional Withholding:
Please see, https://turbotax.intuit.com/tax-tips/irs-tax-forms/how-to-estimate-federal- withholding/L99CO0yTK for more info about W4.
@a_nicolet0201 Thanks for the question!!