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W-4 married fillign single (but declare jointly for Tax Refund)

W-4 married fillign single (but declare jointly for Tax Refund)

Old Jan 28th 2018, 10:48 pm
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Default W-4 married fillign single (but declare jointly for Tax Refund)

Hey y'all.

So my wife has been employed for a few months now, and I've just started a new job early 2018.
I've filled a W-4 form for administrative paperwork, and now that I do my actual maths, things don't check out.
We're an "easy" case as we live in Texas - no state income tax!

My wife fills single (company policy it seems), so my guess is that I should also fill married - single as well, with an amount of personal allowances of 1 (just me).
THEN there's this:
If you are single and have more than one job or are married and you and your spouse both work and the combined
earnings from all jobs exceed $50,000 ($20,000 if married), see the Two-Earners/Multiple Jobs Worksheet on page 2
to avoid having too little tax withheld.
That's our case, so I also filled the sheet, and it just add (relatively) astronomical amounts of witholding! As if the lowest income wasn't paying any tax at all!
Especially as there's only a few hundreds of $ of difference when I calculate both single vs married jointly, with 2017 rates.

With the new 2018 rates it's even worse as a couple having more or less the same salary will actually pay the SAME taxes single x2 or married jointly (give or take a few $ if close to high-end of brackets).

Should I change my W-4 to married filling single and just undo all I had done on page 2? I guess we'll also have new versions of W-4 with new brackets at some point.

Thanks

Christophe
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Old Jan 28th 2018, 11:47 pm
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

How you withhold on your W-4s and how you file your taxes are not the same. In the past while we’ve always filed our taxes as “married-filing-jointly”, I used to file my W-4 as “married but withhold at higher single rate”. Until we had a house with deductions available for property taxes and mortgage interest, withholding at the married rate always resulted in us owing the IRS when doing our tax returns. I may have to start doing that again with the cuts in those deductions under the Trump tax plan.
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Old Jan 29th 2018, 12:02 am
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

There is no such thing as married filing single. Maybe consult a tax professional if this is too complicated.
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Old Jan 29th 2018, 12:04 am
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

OK well married withholding single on the W-4 form
Married, but withhold at higher Single rate
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Old Jan 29th 2018, 12:05 am
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

And I agree both withholding at single rates is the safest way to avoid having too little withholding. It's just the other part that is very confusing (cf. quote on my 1st post)
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Old Jan 29th 2018, 10:06 am
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

Many of the later years we were working we had significant income that had no withholding, including a UK private pension I took from age 50. The W-4 includes a box to tell the employer to take $x extra so I would complete it with the minimum number of dependents and also add extra withholding that I thought was needed.

Note also that you can send as many W-4's as you wish during the year to adjust your withholding to your liking.
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Old Jan 30th 2018, 2:32 pm
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Default Re: W-4 married fillign single (but declare jointly for Tax Refund)

Thanks for the replies.
I think we'll ask an accountant at some point to double check my maths and whether the W4 we both gave were somehow accurate or leading to massive withholdings (I'm talking several thousands per year extra according to the W4 Two Earners worksheet I filled) that may be given back on tax refund next year.
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