How do I make sure I pay enough income tax every month in 2022 to avoid having to pay the IRS in 2023

[UsedVanilla33]

Greetings Intuit Community!

I have to pay some money back to the IRS this year because my wife and I have not paid enough taxes per month. I believe it's because we made a lot more money in 2022 than in 2021 (we had only 1 income in 2021) and changed tax bracket.

This year I wanna "overpay" and ensure next year when I do my tax returns I don't have anything to pay to the IRS. Is the monthly income tax I pay be adjusted based on my new tax bracket?

Appreciate your thoughts!

Cheers

[ErnieS0 · Accepted solution]

You can use the free TurboTax W-4 Calculator 2022 to adjust your withholding. The app will show you what numbers to enter on your W-4. You can change your tax withholding at any time.

Another easy way (assuming your income is the same) is to divide what you owe by the number of remaining pay periods and ask for additional withholding. For example, if you owe $1,000 and have 20 pay periods left you can have an extra $50 withheld from your pay. Add a few dollars on top for cushion.

Increase your 401(k)

If you have 401(k) plans at work, you can also increase your contributions. This is not a dollar-for-dollar savings, because a 401(k) contribution is a deduction, meaning if your are in the 20% bracket, you'd save $20 for every $100 in additional contribution. However the extra money goes to your retirement and not to the IRS.

Or you can do a combo,

[UsedVanilla33]

Thank you very much I appreciate it.

[fanfare]

If your wife got a job (W-2). she has to submit a W-4 to employer also.

That should take care of it.