Newly married in Michigan... trying to figure out most beneficial paycheck withholdings and filing status.?

For federal, the less you have deducted, the less you'll get in your refund, since your refund is just giving you back whatever amount you had withheld that was above what you actually owe. If you don't own a house or have children, you'd be wise to file as married/zero if you want a refund. I'm not sure what $1000 a year limit you are talking about for your second job - that's taxed from the first dollar, there isn't a $1000 a year limit on anything. Because of that second job, if you file married/zero you could end up owing tax. If you both file married/zero, they won't take out a lot more than if you file married/one, and you'll be a lot more likely to get a refund. If you aren't concerned about a refund and don't mind taking a chance on owing a little, you can both file married/one.