Should my spouse work?

The purpose of the Should My Spouse Work? Calculator is to compare the financial scenarios of having both spouses work to having only one spouse work. To use this calculator you will need to enter financial information like what your spouse earns, how many allowances they take, what percentage of their paycheck goes towards a retirement account, what type of pay period they have, how much is taken out of their paycheck for taxes, and what additional expenses your family has when they work. The calculator uses this information to determine how much the second income is actually worth. You can then use this amount to determine if it is a good idea for your spouse to work or to stay home.

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.

*This entry is Required. indicates required.

Your spouse's paycheck information:

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Gross pay:*This entry is Required.Enter an amount between $1 and $1,000,000

Pay period:*This entry is Required.

Number of allowances:*This entry is Required.Enter an amount between 0 and 99

401(k)/403(b) plan withholding:*This entry is Required.Enter an amount between 0% and 80%

State & local taxes:*This entry is Required.Enter an amount between 0% and 20%

Other pre-tax deductions:*This entry is Required.Enter an amount between $0 and $100,000

Additional expenses when spouse works:

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Total: $0

Child care:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Transportation & gas:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Work clothing:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Food:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Cleaning and other services:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Other expenses:*This entry is Required.Enter an amount between $0.00 and $1,000.00

Your net pay after expenses is estimated at $868.88 Pie Chart: Please view the report to see detailed calculation results in tabular form.

Your net pay after expenses is estimated at $868.88.

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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. We assume 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.

Number of allowances

When your Federal income tax withholding is calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. 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 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 2019, the maximum contribution for this type of plan is $19,000 per year for individuals under 50 and $25,000 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. For 2019, we take your gross pay, minus $4,200 per allowance, times this percentage 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 2019, Social Security tax is calculated as your gross earnings times 6.2%. For 2019, incomes over $132,900 that have already had the maximum Social Security tax of $8,239.80 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

Federal income tax withholding is calculated by:

Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
Subtracting the value of Withholding Allowances claimed (for 2019, this is $4,200 multiplied by Withholding Allowances claimed on the employee's W-4: Employee's Withholding Allowance Certificate).
Determining your annual tax by using the tables below (single and married rates, respectively).
Dividing 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 2019^*
Annual taxable income between these amounts	Annual withholding	Withhold additional % of income over this amount
^*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2019
$0 - $3,800	$0.00
$3,800 - $13,500	$0.00	plus 10% of income over $3,800
$13,500 - $43,275	$970.00	plus 12% of income over $13,500
$43,275 - $88,000	$4,543.00	plus 22% of income over $43,275
$88,000 - $164,525	$14,382.50	plus 24% of income over $88,000
$164,525 - $207,900	$32,748.50	plus 32% of income over $164,525
$207,900 - $514,100	$46,628.50	plus 35% of income over $207,900
$514,100 - (no limit)	$153,798.50	plus 37% of income over $514,100

Married Withholding Rates 2019^*
Annual taxable income between these amounts	Annual withholding	Withhold additional % of income over this amount
^*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2019
$0 - $11,800	$0.00
$11,800 - $31,200	$0.00	plus 10% of income over $11,800
$31,200 - $90,750	$1,940.00	plus 12% of income over $31,200
$90,750 - $180,200	$9,086.00	plus 22% of income over $90,750
$180,200 - $333,250	$28,765.00	plus 24% of income over $180,200
$333,250 - $420,000	$65,497.00	plus 32% of income over $333,250
$420,000 - $624,150	$93,257.00	plus 35% of income over $420,000
$624,150 - (no limit)	$164,709.50	plus 37% of income over $624,150

Should my spouse work? Calculator Overview

Most married couples think that the only way they can survive is when both partners work. However, if you have kids then the added cost of childcare can actually make a dual income less advantageous then having one parent stay home and have one parent work. To determine if it is better if your home be supported by one or two incomes then you should use our Should My Spouse Work? Calculator.

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