[dancepodium]

I work in IL, my wife works in MI. How do we find our allowances on Fed W-4 and State W-4s?
As per IRS advice, we claim all allowances on higher income W-4 and none on the other one. But since our states are different, how do we mention our allowances there?

[MukatA]

The purpose of W4 is to guide your employer how much tax they should withhold from your pay check.
You can divide the allowances. You can always submit a new W4 if you want to change the allowances.
Read: Your U.S. Tax Return: Filing W4 Employee's Withholding Allowance Certificate

[dancepodium]

The purpose of W4 is to guide your employer how much tax they should withhold from your pay check.
You can divide the allowances. You can always submit a new W4 if you want to change the allowances.
Read: Your U.S. Tax Return: Filing W4 Employee’s Withholding Allowance Certificate

Thank You MukatA. Here are my specific questions

1) My total allowances come out to be 2 [Entering '1' for myself and '1' for 'married'. If I enter '2'. Could my wife enter '1' allowance for herself or should it be '0'].

2) Should we both fill the double income sheet [counting factors for highest and lowest income] to report additional withholding per month?

Thanks for your help

[AtlantaTaxExpert]

Because your wife's income starting tax is equal to your marginal tax rate, you should claim '1' exemption on your W-4 and ZERO on her W-4 to ensure enough money is withheld to cover your tax liability on your joint income.