Which option should a taxpayer choose on Form W-4 to ensure accurate withholding when their spouse also works?

Choosing to have the amount entered on the Form W-4 with the highest paying job is prudent for ensuring accurate withholding when both spouses are working. This approach takes into account the higher overall income, which is more likely to fall into a higher tax bracket. By adjusting the withholding on the higher paying job, the taxpayer can better match their withholding to their combined income, thus reducing the likelihood of under-withholding and facing a tax bill at the end of the year.

When the spouse's income is considerable, it is beneficial to ensure that the total withholding reflects the combined income level of the household. This method helps manage tax liabilities effectively by aiming to match the withholding amount more closely to what will ultimately be owed based on the couple's total income. This strategic decision makes the tax filing process smoother and can help in avoiding possible penalties related to under-withholding.