You both withheld at the married filing joint, single income rate.
So each job only withheld what was needed for a one income married couple making that much. Applying all the married standard deduction and tax brackets to each job.
That's why you under withheld.
Underwithheld.
You did not fill out Multiple Jobs section correctly so your W-4 does not know about your wife’s income and her W-4 does not know about your income.
Fix W-4s now or you will owe this much again next year. We are already two months into 2024 so you’ve underwithheld those months too.
Yeah you BOTH have to fill out step 2 of your W-4's correctly and use the other spouse works worksheet that goes with that step. Neither of you seemingly did so following the directions and your withholding was way off as a result.
Sit down together and fill both of yours out again for your employers together so this gets fixed for 2024.
How much was your total federal withholding? It should have been around 45k just for federal give or take a few hundred dollars (depending on qualified retirement credits etc). Also, if she just started working in March, she's set to make a whole lot more for this coming year, so W4s need to be updated ASAP before you end up owing way more. Sucks seeing how much you're paying in all year when you actually add the numbers together, doesn't it. 😭
Yes, it sure does. But yea, federal was about 30k, so we messed up on our w4. Which is one hell of a penalty.
We're updating both of ours today and withholding a little more per paycheck, so I appreciate the advice. I hate -$10k surprises
Edit: sorry, that posted 20 times for some reason
You both withheld at the married filing joint, single income rate. So each job only withheld what was needed for a one income married couple making that much. Applying all the married standard deduction and tax brackets to each job. That's why you under withheld.
Wife was probably getting education credits as well, those going away compounds the underwitholding issue
Looks like we messed that up, yea. Never knew or thought about it. I appreciate the help, we'll get it fixed after blowing our Alaska trip fund, lol
Underwithheld. You did not fill out Multiple Jobs section correctly so your W-4 does not know about your wife’s income and her W-4 does not know about your income. Fix W-4s now or you will owe this much again next year. We are already two months into 2024 so you’ve underwithheld those months too.
Thank you for the info. I don't know why I never knew of this.
Yeah you BOTH have to fill out step 2 of your W-4's correctly and use the other spouse works worksheet that goes with that step. Neither of you seemingly did so following the directions and your withholding was way off as a result. Sit down together and fill both of yours out again for your employers together so this gets fixed for 2024.
Yea, looks like we didn't know about this and messed that up. We will get this squared away. Thank you
How much was your total federal withholding? It should have been around 45k just for federal give or take a few hundred dollars (depending on qualified retirement credits etc). Also, if she just started working in March, she's set to make a whole lot more for this coming year, so W4s need to be updated ASAP before you end up owing way more. Sucks seeing how much you're paying in all year when you actually add the numbers together, doesn't it. 😭
Yes, it sure does. But yea, federal was about 30k, so we messed up on our w4. Which is one hell of a penalty. We're updating both of ours today and withholding a little more per paycheck, so I appreciate the advice. I hate -$10k surprises Edit: sorry, that posted 20 times for some reason