Are You and Your Partner on the Same Retirement Page?

Should my spouse work?

This calculator is designed to help you see the financial impact of adding, or removing, a spouse's income to your household. As with any decision of this type, there are many factors to consider, but knowing your finances is a good place to start. This calculator uses the 2016 withholding schedules, rules and rates (IRS Publication 15).

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.



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Should my spouse work?
*indicates required.
**FIG_GRAPHTITLE** Pie Chart: Please use the calculator's report to see detailed calculation results in tabular form.

Definitions

Additional expenses when spouse works

These are any additional expenses that you expect to pay when your spouse works. All of the expenses should be entered as the amount per pay period. The tool assumes that these expenses are paid with your after-tax income.

Pay period

This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year), and Annually (one paycheck per year).

Gross pay

This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.

401(k)/403(b) plan withholding

This is the percent of your gross income you put into a taxable deferred retirement account such as a 401(k) or 403(b). While increasing your retirement account savings does lower your take home pay, it also lowers your Federal income tax withholding. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your 401(k) or 403(b) plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2024, the maximum contribution for this type of plan is $23,000 per year for individuals under 50 and $30,000 for individuals 50 or older.

Employee paid health insurance

Health insurance premiums deducted from your pay. Do not include any amounts paid directly by your employer. Your health insurance premiums are not subject to FICA or Medicare taxes.

State and local taxes

This is the percentage that will be deducted for state and local taxes. The tool multiplies your calculated taxable income by this rate to estimate your state and local taxes. Please note, this calculator can only estimate your state and local tax withholding. The tax rate displayed is an assumption that may or may not be relevant to your situation.

Social Security tax

For 2024, Social Security tax is calculated as your gross earnings times 6.2%. For 2024, incomes over $168,600 that have already had the maximum Social Security tax of $$10,453.20 withheld will not have additional withholding. Please note that if you have other wages or employers this calculator does not make any assumptions as to the total Social Security tax withheld for the current year other than the actual inputs for this calculator. This tax is also referred to as the Federal Insurance Contributions Act Old Age Survivors and Disability Insurance (FICA OASDI).

Medicare tax

Medicare tax is calculated as your gross earnings times 1.45%. Unlike the Social Security tax, there is no annual limit to the Medicare tax. Starting in 2013, an additional Medicare tax of 0.9% is withheld on all gross earnings paid in excess of $200,000 in a calendar year. If you enter an amount for the year-to-date gross earnings, this additional Medicare tax will be calculated based on the current period's gross earnings that exceed the annual $200,000 threshold. If no year-to-date amount is entered, any additional Medicare tax withholding will be calculated only for any gross earnings in excess of $200,000 for the current payroll period. If year-to-date wages prior to the current payroll period have exceeded $200,000, the year-to-date wages must be entered to calculate an accurate additional Medicare tax.

Federal tax withholding calculations

2024 Federal income tax withholding calculation:

  1. Multiply taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtract $12,900 for Married, otherwise subtract $8,600 for Single or Head of Household from your computed annual wage.
  3. Calculate your annual tax by the IRS provided tables. If you have checked "two jobs or spouse works" alternative tax tables provide by the IRA are used to accommodate the second income.
  4. Subtract the dependent tax credit total from the computed annual tax.
  5. Divide the amount of tax by the number of pay periods per year to arrive at the amount of Federal tax withholding to be deducted per pay period.
Single Withholding Rates 2024*
Annual taxable income between these amountsAnnual withholdingWithhold additional % of income over this amount
$0 - $6,000$0.00 
$6,000 - $17,600$0.00plus 10% of income over $6,000
$17,600 - $53,150$1,160.00plus 12% of income over $17,600
$53,150 - $106,525$5,426.00plus 22% of income over $53,150
$106,525 - $197,950$17,168.50plus 24% of income over $106,525
$197,950 - $249,725$39,110.50plus 32% of income over $197,950
$249,725 - $615,350$55,678.50plus 35% of income over $249,725
$615,350 - (no limit)$183,647.25plus 37% of income over $615,350
*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2024
Married Withholding Rates *
Annual taxable income between these amountsAnnual withholdingWithhold additional % of income over this amount
$0 - $16,300$0.00 
$16,300 - $39,500$0.00plus 10% of income over $16,300
$39,500 - $110,600$2,320.00plus 12% of income over $39,500
$110,600 - $217,350$10,852.00plus 22% of income over $110,600
$217,350 - $400,200$34,337.00plus 24% of income over $217,350
$400,200 - $503,750$78,221.00plus 32% of income over $400,200
$503,750 - $747,500$111,357.00plus 35% of income over $503,750
$747,500 - (no limit)$196,669.50plus 37% of income over $747,500
*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2024
Head of Household Withholding Rates *
Annual taxable income between these amountsAnnual withholdingWithhold additional % of income over this amount
$0 - $13,300$0.00 
$13,300 - $29,850$0.00plus 10% of income over $13,300
$29,850 - $76,400$1,655.00plus 12% of income over $29,850
$76,400 - $113,800$7,241.00plus 22% of income over $76,400
$113,800 - $205,250$15,469.00plus 24% of income over $113,800
$205,250 - $257,000$37,417.00plus 32% of income over $205,250
$257,000 - $622,650$53,977.00plus 35% of income over $257,000
$622,650 - (no limit)$181,954.50plus 37% of income over $622,650
*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2024



Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. The S&P 500 is an unmanaged index of 500 widely held stocks. It is not possible to invest directly in an index. The performance mentioned does not include fees and charges which would reduce an investor returns. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, or state or local taxes. Profits and losses on federally tax-exempt bonds may be subject to capital gains tax treatment. Fixed income risks include, but are not limited to, changes in interest rates, liquidity, credit quality, volatility, and duration.