W-4 MFJ with 3 Jobs
This is a great question! Managing W-4 forms with multiple jobs in a household can feel overwhelming, but breaking it down step by step will make it more manageable. I'll walk you through it:
Key Considerations
Combine Income for Accuracy: When you and your spouse file jointly, your combined income determines your tax bracket. You'll want to ensure enough tax is withheld across all jobs to avoid a large bill at tax time.
W-4 Adjustments: The goal is to withhold the correct amount—not too much, which reduces cash flow, or too little, which can lead to penalties.
State Withholding: Indiana (IN) taxes income at a flat rate (3.15% for 2024), plus a county tax. We'll address this separately.
How to Fill Out Your W-4s
Step 1: Personal Information
- For all jobs, check Married Filing Jointly (MFJ) in Step 1©.
Step 2: Multiple Jobs or Spouse Works
- Check the box in Step 2© for the two higher-paying jobs (your spouse's $58,000 job and your $55,027 job).
- Do not check Step 2© for the lowest-paying job ($25,702).
Step 3: Dependents
- Since you have no dependents, enter 0.
Step 4: Other Adjustments
- Leave Step 4(a) (other income) blank unless you have untaxed income like dividends.
- Step 4(b): Leave this blank unless you plan to itemize deductions.
- Step 4©: This is where you'll add the additional withholding.
How to Split Additional Withholding
- The additional $393.85 you calculated is correct if it's based on IRS withholding tables for your combined income and MFJ filing status.
- You can split this amount between the two higher-paying jobs:
- Add $196.92 in Step 4© on both your W-4 and your spouse’s W-4 for the $58,000 and $55,027 jobs.
- Do not enter anything in Step 4© for the $25,702 job.
State (Indiana) Withholding
- Indiana has a flat state tax rate of 3.15% for 2024, and counties apply an additional income tax (ranging from 0.5% to 3.38% depending on your residence).
- Should you add extra withholding? It depends:
- If your combined federal withholding adjustments account for taxes on your total income, the standard state withholding should suffice.
- If you consistently owe state taxes, you might add extra withholding. A rough estimate would be $20–30 extra per paycheck to cover any shortfall, but review past state tax bills for accuracy.
Summary of Steps
On your $55,027 job and your spouse’s $58,000 job:
- Check Step 2©.
- Enter $196.92 in Step 4©.
- Leave all other lines blank.
On the $25,702 job:
- Do not check Step 2©.
- Enter 0 for Step 3 and leave all other fields blank.
State withholding (Indiana):
- Review past state tax liability. If you’ve owed taxes, consider adding $20–30 extra per paycheck on one of your higher-paying jobs.
Why This Works
By splitting the extra withholding evenly between the two higher-paying jobs, you ensure the proper total amount is withheld while minimizing the burden on any one paycheck. Unchecking Step 2© on the lowest-paying job simplifies the calculation and avoids overwithholding.