Have Tax Questions? Ask a Tax Expert for Answers ASAP
You can have it withheld from her check, let me get you the form
you will need to:
will we suffer a penalty if we just have her check direct deposited to a bank account we share and I adjust my withholding at my job to cover the income increase? my worry is a penalty and estimated tax payments vs. me just withholding more out of my weekly paychecks?
You could do that, as well ... If you simply deducted 25% (as this is on top of the income you are already receiving), you should be v,ery safe
Thoswe are the tax brackets for married filing jointly
But, yes having it withheld from your paycheck will work as wel
either option is paying the tax on an ongoing basis, so no problems with underpayment or estimated, and if you file jointly, it's all based on the total household income'(so withholding from either resource has the same effect)
her payments are $1169 a month, my income is roughly $8000 a month. currently filing married withholding 6. own a house with mortgage payments and interest deduction. we file married jointly with itemized deductions and average about $1300 in yearly income tax return...
If you'll look at the tax brackets above, you're at 110,000 total, so even with deductions, you're probably still squrely in the 25% bracket ... So withholding 25% of that additional income (that incremental 1169/mo) either through withholding the 25% option from her check or adding that amount (divided by 12, if you're paid monthly) on you're W-4 at work will have the effect of offsetting the extra check
so as long as you have 292 a month wiithheld from either resource the effect will be the same
fantastic. thank you for your answers. you have provided a thorough explanation.