No. of Recommendations: 0

What I have found is a danger zone when 2 people work and one gets a large raise is not enough federal tax withheld. Each income may only be in the 15% or low 28% range, but together they add up to be solidly in the 28% or higher.

I had this problem last year when my wife got a large raise. I forgot to recalculate the total federal withholding for the joint tax return and readjust the W-4's. I got a surprise at tax time of owing more than $1000.

My advice is to recheck your withholding and redo the W-4's so you can determine what's left over to invest or have fun with.

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