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.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.