“A man should never neglect his family for business.” —Walt Disney
When the poorly named and ill-conceived “Tax Cuts and Jobs Act” passed in 2017, it made filing a W-4 difficult.
On your State equivalent, you can still enter “Single,” “Married,” or “Married but wishing to be withheld at the higher single rate.” There is a reason for that last status. The W-4 takes into consideration your standard deduction. If one of you works and the other one of you stays home, then the “Married” status deducts the married standard deduction, which is twice as high as the single standard deduction, and, in this case with one wage earner, that works. But if you both work, and you both take the married standard deduction by filing married on the W-4, then you’re each taking the married standard deduction which means that you’ll have twice as much standard deduction in calculating withholding, which means much less withheld and a huge tax bite on April 15th.
And the new W-4 got rid of the “Married but wishing to be withheld at the higher single rate” category with the IRS, which was designed for people who thought, “I can’t claim single here because I’m married!” So they created a category for married people to claim single withholding and feel okay about it.
So now, the default for two spouses who are both working is for each of them to claim the “Single or married filing separately”category, which is clearly counterintuitive but necessary.
We can, however, fine-tune your W-4 to reduce your withholding and have you come close to breaking even in April.
Getting your W-4 right can get you more take-home pay for your family. There are benefits that some people will qualify with the new tax bill, and if you want to have more money in your pocket and reduce your refund, here are some of the benefits and ways in which you can find tune your W-4.
How Does the OBBBA Help Families?
Your W-4 is the tool that keeps these family benefits in the OBBBA working for you all year long:
Bigger Child Tax Credit (CTC):
Starting in 2025, the credit rises to 2.2K per child (subject to income phaseouts). If your W4 tax form doesn’t reflect your dependents, you’ll keep waiting for a big refund check instead of seeing that money show up throughout the year.
Child Savings Accounts:
For kids born between 2025–2028, the government will deposit 1K. While that isn’t tied directly to the W-4, your overall tax planning (and how you report dependents) makes this fit into your bigger family picture.
Enhanced Dependent Care Credits:
With the OBBBA, you can now claim 50 percent of your childcare expenses as a credit, up from 35 percent. This means most families will get a 15-percentage-point increase in their credit. But only if your withholding strategy is built with this in mind.
Increased Standard Deduction (now permanent):
31.5K for joint filers and 15.75K for singles. This may simplify things for your family by wiping out the need to itemize, while also lowering your taxable income.
New Senior Deduction (2025–2028):
Got parents or grandparents in the home? Family members 65+ qualify for an extra 6K deduction on top of the current standard deduction (this phases out as income rises). So make sure your W4 is tailored to your current family structure.
How Do I Get More Money for My Family?
So what do you do right now? If you want to “break even,” get little to no refund, and have more money in each paycheck, Update your W-4 tax form. Don’t let outdated info linger. The IRS has a great online tool, the Tax Withholding Estimator, that can help you figure out the correct withholding. It’s complicated, but you can adjust your W-4. If you have a spouse, they will likely have to do the same.
But, if you have a complex financial situation (like self-employment income, capital gains, or specific itemized deductions), it’s best to consult with a professional (wink wink) to make sure you’re getting it right.
When you manage your taxes right, you get to make sure your paycheck works harder for your family every single pay period.
And when we adjust your W-4 correctly, you don’t have to wait until next spring to see the benefits. You’ll feel it in your regular take-home pay. With more breathing room for childcare, groceries, or savings.
My team and I want to help you apply the new OBBBA changes in a way that maximizes what your family keeps throughout the year. So, let’s sit down and look at your W4 together:
Otherwise, you and your spouse can just each use “Single” with nothing else on the form, even though you are married, and you should be okay.
