tax experts

[friarjohn]

Here the situation...
My wages $27,244.44
federal tax $2,968.02

wifes wages $24,133.26
fed tax $824.02

We both claim 0 deductions on are w-4 form(i think thats what they call them) Can any one tell me why such a difference in withholdings?

 

[Displaced MassHole]

It's a W2, and there could be a number of things causing the difference.

What kind of work do you both do and how are you paid?

 

[friarjohn]

we both are paid every 2 weeks. i work on a casino boat as an engineer assistant. she works in the fast food as a manager

 

[Synovia]

Both of your tax liabilities should be similar. I can't see any reason other than that her work screwed up.

This will give you some idea of what you both should owe (although it doesn't include the personal exemption) http://www.moneychimp.com/features/tax_brackets.htm


My guess is you'll get a little back, shes gonna owe. (I AM NOT AN ACCOUNTANT)

 

[Bobby_M]

There is more to the W4 than just the number of dependents. You also enter your filing status and whether your spouse works or not. Were either you unemployed when the other first got hired?

If you file jointly, it will probably even out.

 

[buffalobrewer]

any 401k or other differences in benefits?

 

[Brutus Brewer]

Both of your tax liabilities should be similar. I can't see any reason other than that her work screwed up.

This will give you some idea of what you both should owe (although it doesn't include the personal exemption) http://www.moneychimp.com/features/tax_brackets.htm


My guess is you'll get a little back, shes gonna owe. (I AM NOT AN ACCOUNTANT)

Agreed. I do taxes on the side and 2 years ago one of my clients switched jobs and his new employer went 6 months without withholding any federal taxes. Granted he should've paid more attention to his check stub, but the employer screwed up.

 

[adx]

My wife's employer screwed up in 2008 and did the same thing. We ended up not owing since we bought a house last May, but if it wasn't for the interest and points that were deducted we would have owed big time.

 

[Beerrific]

Check your marital status on your W-4s, a similar situation happened to my wife and I for the first part of this year.

Also, with this new "Making work pay" tax credit, the withholding tables got all screwed up last year and more than likely if you and your spouse make roughly the same amount of money, your employer will have probably under-withheld. (Depending on what you marital status is on your W-4).

 

[friarjohn]

my wife has a 401k, i dont. my boss mentioned an interesting thing. I am an hourly employee and she is in a salaried position. I got to call the HQ today.

 

[Refry]

There could also be differences based on how the payroll is processed. Size of the company, whether it's processed in-house, manually, or by a third-party, etc... Lot of possible variables that could cause differences and errors.

 

[Refry]

It's a W2, and there could be a number of things causing the difference.

What kind of work do you both do and how are you paid?

Yeah, the W2 will report your income and tax info at the end of the year, but he's correct on the W-4 being the form you designate how many personal withholding allowances you're claiming.