Follow Us: Google+
 
Bankrate.com

Smart Spending

Should my spouse work?


Calculate your spouse's income and more

This spouse income calculator is designed to show the financial impact of adding, or removing, a spouse's income to the household. As with any decision of this type, there are many factors to consider, but knowing the finances is a good place to start. This spouse income calculator has been updated to use the new withholding schedules for 2008.
This calculator requires a Java-enabled browser. To download the plugin, click here.
Smart Spending

This Financial Calculator requires SUN's Java� Plug-in. If you see this message you will need to download SUN's Java� Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing �Install ActiveX Control�.

    You can also get SUN's Java� Plug-in here: Get the Java� Plug-in!

    For more information about this Plug-in please visit: SUN's Java� Plug-in
    For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions
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.
Number of allowances
When your Federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2010, each allowance you claim is equal to $3,650 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from 0 to 99 allowances.
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 withholdings. 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 2010 there has been no change to the maximum contribution to a 401(k) or 403(b) which is $16,500 per year for individuals under 50 and $22,000 for individuals 50 or older.
State and Local Taxes
This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,200 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.
FICA OASDI
FICA Old Age Survivors and Disability Insurance. FICA OASDI is calculated as your gross earnings times 6.2%. Please note that this calculator does not make any assumptions as to the total FICA OASDI paid for the current year. For 2010, incomes over $106,800 that have already had the maximum FICA OASDI amount of $6,603.00 withheld will not have additional FICA OASDI withholdings.
FICA Medicare
FICA Medicare is calculated as the gross earnings times 1.45%. Unlike FICA OASDI there is no annual limit to FICA Medicare deductions.
Federal tax withholding calculations
Federal income tax withholdings were calculated by:
  1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtracting the value of allowances allowed (for 2010, this is $3,650 multiplied by withholding allowances claimed).
  3. Determining your annual tax by using the tables below (single and married rates, respectively).
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.
Single Withholding Rates*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$0.00 $6,050.00 $0.00

 
$6,050.00 $10,425.00 $0.000

plus 10% of income over $6,050.00

$10,425.00 $36,050.00 $437.50

plus 15% of income over $10,425.00

$36,050.00 $67,700.00 $4,281.25

plus 25% of income over $36,050.00

$67,700.00 $84,450.00 $12,193.75

plus 27% of income over $67,700.00

$84,450.00 $87,700.00 $16,716.25

plus 30% of income over $84,450.00

$87,700.00 $173,900.00 $17,691.25

plus 28% of income over $87,700.00

$173,900.00 $375,700.00 $41,827.25

plus 33% of income over $173,900.00

$375,700.00

(no limit)

 $108,421.25

plus 35% of income over $375,700.00

*This information is from IRS Publication 15, December 17, 2009, for wages paid in 2010.
Married Withholding Rates*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$0.00 $13,750.00 $0.00

 
$13,750.00 $24,500.00 $0.00

plus 10% of income over $13,750.00
$24,500.00 $75,750.00 $1,075.00

plus 15% of income over $24,500.00
$75,750.00 $94,050.00 $8,762.50

plus 25% of income over $75,750.00
$94,050.00 $124,050.00 $13,337.50

plus 27% of income over $94,050.00
$124,050.00 $145,050.00 $21,437.50

plus 25% of income over $124,050.00
$145,050.00 $217,000.00 $26,687.50

plus 28% of income over $145,050.00
$217,000.00 $381,400.00 $46,883.50

plus 33% of income over $217,000.00

$381,400.00

(no limit)

101,085.50

plus 35% of income over $381,400.00

*This information is from IRS Publication 15, December 17, 2009, for wages paid in 2010

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.

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 regard 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.

Mortgage Rates
High Yield CD and MMA Rates
Other Rates
Compare Home Equity Rates



About our rates
advertisement
About this index
Overnight Averages
Product Rate +/- Last week
30 yr fixed mtg
3.67% 3.62%
15 yr fixed mtg
2.80% 2.76%
5/1 ARM
2.60% 2.58%
View rates in your area:
Product Rate +/- Last week
$30K HELOC
4.99% 5.00%
$30K home equity loan
6.17% 6.19%
$50K HELOC
4.56% 4.56%
View rates in your area:
Product Rate +/- Last week
48 month used car loan
2.93% 2.97%
48 month new car loan
2.44% 2.45%
36 month used car loan
2.87% 2.93%
View rates in your area:
Product Yield +/- Last week
6 month CD
0.45% 0.43%
1 yr CD
0.67% 0.63%
5 yr CD
1.24% 1.24%
Compare rates:
Product Rate
Balance Transfer Cards 15.92%
Cash Back Cards 16.34%
Low Interest Cards 11.01%
Compare rates:
advertisement
Partner Center
advertisement
Bankrate's Free Content Center
Bankrate's free content center
Click here to visit the content center.
Stay Connected with Bankrate
Bankrate is now on Facebook ®Bankrate is now on Facebook®
Get alerted when rates changeGet alerted when rates change
Subscribe to Bankrate's RSS FeedsSubscribe:
RSS Feeds
Subscribe to Bankrate newslettersDaily newsletters full of $$ tips

Advertising Disclosure: Bankrate.com is an independent, advertising-supported comparison service. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.