Now that we’re treated as one household instead of two for federal income taxes, I’ve been trying to figure out what we need to do for our pay withholding. This is not trivial, especially since we itemize deductions and have some highly unpredictable non-income earnings. After slogging through the calculations of form W-4 and the Two-earners/Multiple jobs worksheet, I was still a little baffled as to how the number of exemptions was supposed to be split between the two earners. Then I ran across this link:
Unlike the paper worksheet, it actually explains how both people need to fill out their withholding, and I was pleased to see it matches with the numbers that I’d calculated separately.
I also chugged through a bunch of numbers relating to Roth IRAs, 401K, and 403B. We’ll make some changes to our deductions there as well.
Overall, although the number-crunching is tedious, I am relishing the fact that we can finally plan a long-term financial future together, treated as one economic unit with money that can transfer freely between us.