Tax Withholding For Newlyweds (HELP!)
My wife and I were married in 2011 (August to be exact.) Our combined income is $80,000. She and I both make approximately $40,000 each.
Since filing Married with 01 Allowance, our withholding has seemed to reduce in terms of dollar amount from $200 every 2 weeks, to around $120 every 2 weeks.
What concerns me, is now that we are both filing in accordance with most tax preparer's recommended settings, the IRS website is indicating that we will have a tax bill of over $4,000 for 2012 (next year's filing.)
Could someone please explain what I might be doing wrong here? I have never heard of 2 people who file jointly, have ONLY the standard deduction and NO children, would have to claim ZERO allowances just to break even!