W4 Help Please Confused

Submitted by ipoopsparkles123 t3_126581s in personalfinance

My husband and I both work jobs full time no kids no extra income. Last years W4s filled out as married filing jointly with the 2jobs check box. Filed taxes for last year and we owe $. So we used the withholding calculator to adjust and I changed my withholding to still MFJ but not the 2 jobs checkbox but included an additional amount withheld. This pay period the amount of federal tax withheld was less than the pay period before the change I made to withholding. Is that right? I expected it to increase because it was too low before.

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wanttostayhidden t1_je7lrta wrote

Do you both make close to the same amount? If so, the simplest way is to both mark Single and leave everything else alone.

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Rave-Unicorn-Votive t1_je7m7cj wrote

>I changed my withholding to still MFJ but not the 2 jobs checkbox but included an additional amount withheld.

By not checking the 2 jobs box you reduced the "baseline" withholding, so even though you added extra it was extra to the new lower number.

If you took what you owed last year, divided by number of paychecks, and put that as the additional, you'll need to re-check the 2 jobs box.

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ipoopsparkles123 OP t1_je7mj6p wrote

So should we both do the 2 jobs and I leave the additional amount? I’m not really clear why the simple MFJ and 2 jobs was wrong last year.

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Rave-Unicorn-Votive t1_je7n3fd wrote

>I’m not really clear why the simple MFJ and 2 jobs was wrong last year.

Do any of the following apply:

  • dissimilar incomes between spouses

  • significant non-wage income

  • significant wage income from bonuses/commissions and ≥24% tax bracket

>So should we both do the 2 jobs and I leave the additional amount?

Depending on how you calculated the additional amount, possibly. Or, you could leave the 2 jobs box as is and increase the additional. It's just different levers adjusting one total.

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ipoopsparkles123 OP t1_je7nrwk wrote

I had a sign on bonus last year but not the 24% bracket. No the the other two descriptions as well.

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Rave-Unicorn-Votive t1_je7ovmd wrote

Hmm, Married + 2 jobs or Single should work in your situation. Are you sure both of you had the right W4 options selected?

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ipoopsparkles123 OP t1_je7p8d7 wrote

Yes we both double checked it. I wonder if one of the hr systems is wrong.

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Rave-Unicorn-Votive t1_je7zzxr wrote

It is possible for transcription errors to occur. Run your paychecks through a paycheck calculator with the W4 settings you think you have and see if the deductions match.

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wanttostayhidden t1_je7ozjq wrote

For some reason, some employers fail to process the 2 jobs check box. One of your employers may have missed that previously.

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krustymeathead t1_je7m2nn wrote

for MFJ with the 2 jobs section, from what i recall, you only do that for the person with the higher paying job. the person with the lower paying job should mark single on their w4. that way the right amount of tax will come out.

granted this was before the recent w4 changes so this may be different now

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gadorg t1_je7nfn4 wrote

You should still check box 2c if you meet the criteria as outlined in that box, otherwise, go through the worksheet.

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DeluxeXL t1_je7x3iq wrote

There is a possibility that payroll neglected to apply the two jobs checkbox in the computer.

Claiming single without "two jobs" has the exact same effect as claiming MFJ with "two jobs" (up to about $720k income), but less error-prone during data entry.

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MarcableFluke t1_je81hrq wrote

>Last years W4s filled out as married filing jointly with the 2jobs check box. Filed taxes for last year and we owe $.

How much did you owe?

Both W-4s having MFJ with box 2(c) checked shouldn't result in owing anything substantial so long as:

  • The two jobs are the only source of income.
  • Your income comes from pay checks and not supplemental pay (commission, bonuses, etc)
  • Your companies' software can properly handle box 2(c) and withholds appropriately.
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ipoopsparkles123 OP t1_je83skr wrote

Owed about 2K. Had a sign on bonus but otherwise no other income. Pay is very similar between the two jobs. Can’t say about the payroll software. Though based on this experience I have questions.

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