We were married earlier in the year and currently updating our 2018 W4's to reflect our new married status. The 2018 W4 is a bit confusing as based on how we have it currently setup, it looks like we are going to be taxed much more compared to filing both single.
A bit of details:
- Married earlier in 2018, no children
- Myself and wife both work
- We both plan on maxing out our IRA's
When filling out my wife's W4, her companies system automatically marked 0 allowances to claim. We also filled out the Two-Earners/Multiple Jobs worksheet for my wife's W4.
What is the difference between selecting married vs married, but withhold at higher single rate? Do married couples that file jointly select "Married, but withhold at high single rate"? Or is this an option that is only selected when you are married and file separately?
It seems that after having 0 allowances and additional money (just over $300) to be withheld, we are going to be taxed higher compared to being both single.