My wife makes about $80k and front loads her 401k which means she has nearly zero taxable income for the first four months of the year. She just got her first full paycheck of about $5k and only $36 was taken out for federal taxes which seems crazy to me. I make $210k salary with approximately $80k bonus so her income will extremely undertaxed is things aren't adjusted properly. I'd like to arrive at a 'set it and forget it' setup.
I used the IRS online calculator and as best I can tell, everything is made 'right' via 'extra withholding' which I find pretty annoying because as best I can tell its basically an override. I don't want it trying to withhold a set amount next january when my wife is putting her whole paycheck into her 401k.
I'm half tempted to simply pay quarterly taxes. I'm annoyed that I have little understanding how the payroll system figure out how much to withhold.
Anyway, has anyone managed to get something more sensible out of the withholding system?
I used the IRS online calculator and as best I can tell, everything is made 'right' via 'extra withholding' which I find pretty annoying because as best I can tell its basically an override. I don't want it trying to withhold a set amount next january when my wife is putting her whole paycheck into her 401k.
I'm half tempted to simply pay quarterly taxes. I'm annoyed that I have little understanding how the payroll system figure out how much to withhold.
Anyway, has anyone managed to get something more sensible out of the withholding system?
Statistics: Posted by rasputin — Thu Jun 13, 2024 6:57 pm — Replies 3 — Views 210