What should the tax withholding per paycheck be on a $143,000 salary?

Thanks for the response! I'm contributing 10% to my Roth 401k and have about $250 in health insurance premiums pre-tax. My last paycheck only had $610 withheld for federal income tax which seemed low. Should I be concerned about underwithholding?

The $610 withholding might be a bit low but not dramatically so. Your 10% Roth contribution doesn't reduce your taxable income since it's after-tax money, but your health insurance does. You might want to use the IRS Tax Withholding Estimator on their website to check if you're on track. If you're concerned about underwithholding, you can submit a new W-4 to your employer requesting an additional specific dollar amount to be withheld from each paycheck. This is especially important if you or your spouse have other income sources not subject to withholding.

Does it work if you have multiple income sources? My wife and I both work and we always struggle with getting our withholding right because of the marriage tax situation.

I'm kinda skeptical about these AI tools. How does it handle state taxes? I live in a high-tax state and that's always been the hardest part to calculate correctly.

It absolutely handles multiple income sources! That's actually one of its strengths - it looks at your combined household income and calculates the proper withholding adjustments for both jobs. Really helpful for married couples where both work. It handles state taxes too - I'm in California which has pretty complicated state tax brackets, and it calculated both my federal and state withholding needs. It even explains which specific lines on your W-4 need adjustment based on your total tax situation.

Wait, how does this actually work? Do you have to give them your personal info? Seems kinda sketchy to have a third party connecting you to the IRS.

Sorry but this sounds like a scam. There's no way they can get through to the IRS any faster than regular people. I've heard the IRS doesn't even answer most of their calls.

They don't need any sensitive personal info - you just tell them what IRS department you need to reach. It's basically an automated system that navigates the IRS phone tree and waits on hold so you don't have to. When they reach an agent, they call you and connect you directly. They actually do get through - the secret is they have systems that can stay on hold for hours while you go about your day. The IRS does answer calls eventually, but most people can't stay on hold for 2+ hours. I was connected to an agent after about 1.5 hours of wait time, but I only had to be on the phone for the actual conversation part.

But isn't traditional 401k better for high income earners? I thought the tax deferral now gives more benefit if you're in a high tax bracket.

It really depends on your expected retirement income and tax rates. If you believe tax rates will be higher when you retire or that you'll have significant retirement income, Roth can be advantageous even for high earners. Traditional 401k gives you immediate tax savings, which is definitely valuable for high income earners. But with Roth, all your growth is tax-free forever, and you're effectively able to contribute "more" since the contribution limits are effectively the same but Roth dollars are worth more (they're after-tax).

The IRS calculator is good but kinda confusing. I tried using it but got lost in all the different options and numbers. Ended up just asking our accountant.