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Meg Green works in a store and earns $46,000 a year. Her husband, John, works full-time in manufacturing and earns $68,000 a year. In 2018, they will also have $184 in taxable interest and $1,000 of other taxable income. They expect to file a joint income tax return. Meg and John complete Worksheets 1-3, 1-4, and 1-5 of Form W-4. Line 5 of Worksheet 1-5 shows that they will owe an additional $4,459 after subtracting their withholding for the year. All of the following are true regarding their new Form W-4 except:

A. They can divide the $4,459 any way they want

B. They can enter an additional amount on either of their Forms W-4

C. They can divide the additional amount between them

D. They must apply the additional withholding amount to Megs taxable income

ANSWER:

D. They must apply the additional withholding amount to Megs taxable income

A taxpayer is more likely to need to increase his or her withholding if he or she has more than one job or if he or sheis married filing jointly and his or her spouse also works. If this is the case, the taxpayer can increase his or herwithholding for one or more of the jobs. He or she can apply the amount on Worksheet 1-7, line 5, to only one job ordivide it between the jobs any way he or she wishes. In this case, they can divide the $4,459 any way they want.They can enter an additional amount on either of their Forms W-4, or divide it between them.

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