TL;DR
- ✅ Spouse starts working: complete Step 2 on both W-4s
- ✅ Spouse stops working: remove the Step 2 and Step 4(c) adjustments you made for their income
- ✅ Mid-year changes need an estimate, since the checkbox assumes a full year
- ✅ Both W-4s reflect the household, so update them together
Your spouse started working
Each employer withholds as if its paycheck is your household’s only income. Add a second paycheck and your combined income lands in higher brackets than either employer expects, so withholding comes up short. Fix it with Step 2 on both W-4s. The three methods and when to use them are in W-4 for married couples who both work.
⚠️ Mid-year start
The Step 2 methods assume both of you earn for the full year. If your spouse starts in July, the checkbox overshoots. Use the IRS estimator, or compute their expected pay for the rest of the year and put the extra tax in Step 4(c) from the Step 4(c) guide.
Your spouse stopped working
If you added a Step 2 adjustment or a Step 4(c) amount because of their paycheck, it now over-withholds. Resubmit a W-4 without those entries. Your filing status stays Married filing jointly. Your spouse’s employer will no longer be withholding at all, so your own W-4 now covers the whole household.
Spouse retires
Pension and Social Security are not wages. Use Form W-4P for the pension; see the W-4P guide. Remove Step 2 from your own W-4.
Spouse laid off
Unemployment is taxable. They can have 10 percent withheld with Form W-4V, or you can add the tax to Step 4(c).
Spouse becomes a stay-at-home parent
Remove Step 2 from your W-4. If you have children, make sure Step 3 is claimed on your W-4 only.
Spouse starts freelancing
No tax is withheld on self-employment income. See the side-income guide; use Step 4(c) or quarterly estimates.
Recalculate for your new household income — free
Enter both incomes, or just yours if your spouse stopped working, to see what to change.
Open the W-4 Calculator →Related situations
- New marriage rather than a job change: W-4 after getting married.
- Two jobs of your own: W-4 with two jobs.
- Dependents when both spouses work: W-4 Step 3.
- Pension income after retirement: Form W-4P explained.
Frequently asked questions
What do I change on my W-4 when my spouse starts working?
Complete Step 2 on both W-4s, using the IRS estimator, the Multiple Jobs Worksheet or the checkbox. Until you do, each employer treats its paycheck as the only income in your household and withholds too little.
What do I change when my spouse stops working?
If you had completed Step 2 or added an amount in Step 4(c) because of their income, remove it. Otherwise your employer keeps withholding for two incomes and you over-withhold. Your filing status stays the same.
Is it too late if my spouse started working earlier this year?
Not too late, but the fix gets more expensive per paycheck as the year goes on. Calculate the shortfall, divide it by the paychecks left, and put that in Step 4(c).
My spouse is on unemployment. Does that change my W-4?
Unemployment compensation is taxable and 10 percent can be withheld if they ask, using Form W-4V. If they do not, add the expected tax to Step 4(c) on one W-4.
Does it matter which spouse’s W-4 I change?
Make the Step 2 adjustment on both W-4s if you use the checkbox. For the worksheet or estimator, the extra amount goes on one W-4, most accurately on the higher-paying job’s.
Key terms in this article
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