W4 Box 2c confusion for married filing jointly - different entries causing tax issues?

Thank you so much for explaining this! That makes perfect sense. So basically his employer was withholding at a lower rate because they thought his income was supporting both of us, when in reality we both work? Would it be better for us to just both check box 2c, or should we consider doing the more detailed calculation in Step 4 of the W4 form instead?

His employer was withholding tax at the married rate, which has wider tax brackets than single filers, assuming his income was the primary or only income. This results in less withholding than needed when both spouses work at similar levels. For most couples with fairly similar incomes, simply checking box 2c on both W4 forms is sufficient and the easiest approach. However, if you want more precision, especially if you have other income sources or specific deduction situations, using Step 4 for a more detailed calculation can give you better accuracy. The Tax Withholding Estimator I mentioned will help you determine the exact extra withholding amount to put in Step 4(c) if you decide to go that route.

Does taxr.ai actually help you fill out the W4 correctly? I'm having a similar issue where my spouse and I both work, but we have really different incomes ($45k vs $110k). Would it still work for our situation?

I'm skeptical about these tax tools. Does it actually tell you anything different than just using the IRS withholding calculator? And how does it actually see the W4 info since employers don't report that on W2s?

Yes, it gives you specific guidance on how to fill out each section of the W4 based on your actual tax situation. The report includes actual dollar amounts to put in boxes 4(a) or 4(c) if needed, not just general advice. For couples with different income levels like yours, it's actually even more helpful because the Box 2c option is really designed for couples with similar incomes. The tool accounts for the income disparity and calculates more precise withholding adjustments. It works differently than the IRS calculator because it analyzes your actual past returns and withholding patterns. It doesn't need to see your actual W4s - it can determine what likely happened based on the withholding amounts on your W2s compared to what should have been withheld for your situation. Much more personalized than the generic IRS calculator.

How does Claimyr actually work? Do they just call and wait on hold for you? Seems like something I could just do myself if I'm patient enough.

Sounds like a scam tbh. Why would anyone pay a service to call the IRS? And how would they get through any faster than a regular person? The IRS just answers calls in the order they come in.

They use an automated system that waits on hold for you and then calls you when an actual IRS agent picks up. So instead of being stuck on hold for potentially hours, you just get a call when someone is actually there to help. It's definitely something you could do yourself if you have hours to wait on hold. But when I tried doing it myself, I kept getting disconnected after 1-2 hours of waiting, which was incredibly frustrating. With Claimyr, I was able to go about my day and just got a call when an agent was ready. They don't cut in line or anything like that - they just handle the waiting part. For me, it was worth it because I needed specific answers about our W4 situation that I couldn't find anywhere online, and I couldn't afford to keep missing work to sit on hold.

Wait seriously? We both checked box 2c and we got back almost $4500 this year... I thought that was normal but maybe we're overwithholding too? Is there a way to figure out the right amount without underpaying and getting penalties?

Yes, that's likely what happened to you too. A $4500 refund definitely suggests you're withholding too much throughout the year. That's essentially giving up $375 of your monthly budget that you could have been using. The best approach is to use the IRS Withholding Estimator tool I mentioned earlier or a service like taxr.ai that was mentioned. Both can help you calculate a more precise withholding amount. Another option is to still check box 2c but then use line 4(b) to list additional deductions you expect to take, which will reduce your withholding. The goal should be to get as close to zero as possible when you file - neither owing much nor getting much back.

That's exactly our situation too! We're about $25k apart in income and both checked box 2c but still got hit with a bill. What did you end up doing to fix it?

This is really helpful, thank you! As someone new to dealing with W4 issues, I appreciate the clear explanation of what went wrong. The idea of adding a small buffer amount in Step 4(c) sounds smart - better to get a small refund than owe a big bill! Quick question though - when you say "run the numbers through the IRS Tax Withholding Estimator mid-year," about what time of year would be best to do this? Should we wait until we have a few months of paystubs from the corrected W4, or do it sooner?

I'd recommend doing the mid-year check around June or July, after you've had at least 2-3 months of paystubs with the corrected W4. This gives you enough data to see the actual withholding amounts, but still leaves you with 5-6 months to make additional adjustments if needed. The timing is important because you want to catch any issues early enough to fix them, but not so early that you don't have reliable data from the new withholding settings. Plus, doing it in summer gives you time to submit another W4 adjustment before the busy fall season if the numbers show you're still off track. @Ravi Sharma One more thing - when you do run the estimator, make sure to have your most recent paystubs handy, along with last year s'tax return if your situation is similar. The tool will ask for year-to-date withholding amounts, so having that info ready makes the process much smoother.

Great question! You should wait to change your W4 to "married filing jointly" status until you're actually legally married, since your tax filing status is determined by your marital status on December 31st of the tax year. However, you can start planning now by running some estimates. Since your incomes are very similar to Jacob's situation ($58k vs $62k compared to his $65k each), you'll definitely want both of you to check Box 2c once you update to married status. The small buffer in Step 4(c) is also a smart idea - maybe $75-100 per month total between both of your paychecks. One thing to consider: if you get married partway through the year, your withholding for the first part of the year will be at single rates, which typically withhold more than married rates. This might actually work in your favor and help avoid underpayment, but you'll want to run the IRS estimator after you update your W4s post-marriage to make sure everything balances out for the full year.