Single Tax Withholding Vs. Married

Tax withholding occurs when your employer takes money out of your paycheck to pay for your estimated taxes at the end of the year. One of the factors affecting how much your employer withholds is your filing status.

Filing Status

If you file a joint return with your spouse, less of your paycheck will be withheld for taxes because the tax brackets for married filing jointly are larger than the tax brackets for single filers.

Personal Allowances

If you are married, you can claim your spouse as a personal allowance on your tax withholding forms. Personal allowances decrease the amount withheld.

Amount

Each personal allowance you claim on your tax return decreases your annual wages subject to tax withholding by $3,650 for 2010.

Function

You indicate your filing status on your W-4 form that you submit to your employer. This form specifies how much your employer should withhold.

Considerations

You can claim fewer personal allowances than you are entitled to, but not more. Claiming fewer personal allowances will result in more money withheld from your paycheck, but a bigger tax refund (or smaller tax liability) at tax time.

Potential

If you and your spouse work, you may need to complete the two earners/multiple jobs worksheet that is part of the W-4. This will help you determine the proper amount that should be withheld from each of your paychecks.

References

• IRS: Notice 1036 - Percentage Method Tables for Withholding
• Kiplinger: Marriage and Taxes

Resources

• IRS: Form W-4