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Go Vols! |
I can't find this info easily. Something changed on my wife's tax withholdings. I am not sure what, but when we looked it was set to married filing separately, not checked in the box for spouse works (I do) and also had an extra $ withheld. Usually we are closer to the break even point but this year the withholding came in a couple thousand short of the prior year on her federal taxes although the income was comparable, so this is not a credits/deductions thing. Which options withhold the most to the least federal tax per paycheck? 1. married filing separate with the spouse works box not checked 2. married filing separate with the spouse works box checked 3. married filing jointly with the spouse works box not checked 4. married filing jointly with the spouse works box checked | ||
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Member |
The response to those questions are fact driven (not results driven). Notice the signature block - she will be signing that her responses to questions are true, correct, and complete - under penalty of perjury. So check the box that is appropriate. If you need additional amounts withheld use the option to have your company withhold specific amounts from each paycheck. See Step 4 item (c). Speak softly and carry a | |||
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| Ignored facts still exist |
Nailed it right there. I had to do this for several years until I decided to just do quarterly estimated payments with a 1040-ES form, which is an option too if you are underpaying tax through the year. . | |||
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Shall Not Be Infringed |
Just went through this with my Wife as she had lost her job (Thanks COVID!) and was forced to find a new one....Isn't it great!  Apparently the .Gov dreamed up the changes the W-4 in 2020 to 'help' those that 'may' have owed penalties for Insufficient Withholding when they filed their taxes. Nothing could be less clear than how to fill out the new W-4 and get the same result as the old W-4, which actually worked PERFECTLY Fine. AND, Using the 'Estimator' at IRS.gov is REALLY Fun....It's kinda like doing a Tax Return before you know how much you made that year!  Entering 1 or ZERO in box 1 of the old form, and calculating any add'l withholding as needed was SO Much Simpler! ____________________________________________________________ If Some is Good, and More is Better.....then Too Much, is Just Enough !! Trump 47....Make America Great Again! "May Almighty God bless the United States of America" - parabellum 7/26/20 Live Free or Die! | |||
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| Go Vols! |
I am only interested in the result. We changed it to the correct category. This will be used to adjust the additional withholding amount. I wanted to know what the change should show on the next paychecks compared to past ones. | |||
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| Shall Not Be Infringed |
Based on my research, and the "This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld" comment on the form, I believe 'Married Filing Jointly and checking the Box' will result in the most tax withholding per paycheck. I would be REALLY nice if there was a table that just provided a % Withholding value, which you could use vs your last years 'Effective Tax Rate', but that would be too easy and of course, does NOT exist! We changed my Wife's W-4 form just prior to her most recent pay period (Did NOT check the box, but eliminated Claiming Dependants), but the withholding still isn't correct based on her pay stub (too low, of course). Unfortunately, I think this will be a moving target until we accidentally land on the right number! I'm gonna have her revise her W-4, AGAIN, and 'Check the Box' this time....Hopefully we'll hit the target this time! ____________________________________________________________ If Some is Good, and More is Better.....then Too Much, is Just Enough !! Trump 47....Make America Great Again! "May Almighty God bless the United States of America" - parabellum 7/26/20 Live Free or Die! | |||
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thin skin can't win |
For those like nhrace trying to estimate impact of changes to withholding, this IRS publication shows that. You have to scroll down to table beginning around page 23 and beyond depending on exemptions, filing status and payroll frequency. IRS Publication 15T Yeah, it's a wall of numbers but the math is there. The other alternative above to adjust by an additional flat dollar amount per payroll also works easily to hit a targeted amount. I use Turbotax and generally after completing each year save second copy of that file data as "2021 Estimate", etc. and use that for estimating over/underpayment for current year. So for 2021 adjust to roughly right amounts for any deductions or investment income, and simply extrapolate my current YTD taxable income and withholding from pay stub. Adjust withholding as needed. Lather risen repeat sometime in Q3 just to allow time to adjust for any significant shortfalls. Tougher to do if you're not on a somewhat regular salary or hourly rate but still possible. I hate being surprised in Jan/Feb w/r/t the prior year over/under payment! You only have integrity once. - imprezaguy02 | |||
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| Go Vols! |
Thanks. That basically was what I wanted to see but really shows no impact. Married filing separately without the spouse working box checked is the exact same withholding as married filing jointly with the spouse working box checked. Guess I will still have to increase the extra withholding amount. | |||
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| Shall Not Be Infringed |
THANK YOU for posting that!! After reviewing the 2021 Wage Bracket Method Tables for the appropriate Payroll Period, I was able to back into the correct/desired withholding by calculating the percentage and confirm what was appropriate / equivalent to my wife's historical withholding. As I had suspected, we need to 'Check the Box' in question...  ____________________________________________________________ If Some is Good, and More is Better.....then Too Much, is Just Enough !! Trump 47....Make America Great Again! "May Almighty God bless the United States of America" - parabellum 7/26/20 Live Free or Die! | |||
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