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IIRC, (it's been a number of years since both of us had W-2s), the one with the higher salary should take all of the withholding allowances. If you really want to do the calculations in all their gory detail, get a copy of Pub 15, Employer's Tax Guide. It will give you the precise amount to be withheld from each paycheck based on the number of withholding allowances claimed.

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