My ex received a fairly large bonus in early 2015 and then a severance payout in the Spring of 2015. Both of these were taxed "high" meaning more taxes were taken out and will be returned during tax time of 2016. Then he was unemployed for couple months and now started working again.
At his current job he doesn't have any tax deductions coming out of his paycheck (medical, 401k, etc), just regual tax withholdings. I'm not sure what he set his withholdings to either. This new job he has is a 30% pay cut from his old job.
I just accepted an offer for a new job, with 25% raise. I will have medical, FSA or HSA, childcare flex, and some 401k deductions coming out of my paycheck.
It doesn't look like his pay cut and my raise changed out tax bracket ($200K combined income at the beginning of the year vs $175K combined income as of next week).
He may or may not get a better paying job before year end, however all medical and childcare deductions will remain with me.
2015 is the last year we will be filing taxes married filing jointly. Whatever the result of this will be whether return or payment we will split equally.
I would like to minimize the amount I will have to pay out of pocket, but also I don't want to have a large return by not withholding enough, since I will have to split it with him.
Logically, I'm thinking that we should get a tax returned for his over-taxed bonus and severance. So if I under withhold a little, it should even out. Does this sound right?
Should I have extra withholdings added to my W-4?
Ideally, I'd like to offset his tax return with my tax payment as much as possible and come out at net zero. How do I accomplish this?
Am I missing anything here?