W-4

[user17786114856]

How can I adjust my W-4 so that I owe less taxes? I have a side gig and investments with capital gains.

[AmitaR]

Looks like you want to adjust your Form W-4 so you don't need to send in the Quarterly Estimated Taxes. Right?  If I were you, I would probably do the same!

Let's say you filled out the Step 1 with your Filing Status correctly, then check the box in Step 2 if married filing jointly and/or hold multiple jobs.

Dependents in Step 3. 

Step 4 is very important in your situation.  You can enter your Investment income and retirement income in Step 4a.  If you're itemizing, then enter in Step 4b or skip this so your withholding will be based on Standard deduction.  Now, most importantly, you need to figure out the tax on your gig income (regular tax as well as Self-employment tax).  Divide that over the remaining pay periods and enter the amount as "Extra withholding" in Step 4c

Thank you for joining the event today @user17786114856 

[peppercornbb]

I had a similar question. My side gig is not my own business, just extra income I make from a part time job. What would you recommend for my W-4? And do I need to complete one for each employer?

I also have investments with capital gains — can anything be done on the W-4 to account for that so I don’t owe as much taxes?

[AmitaR]

Yes, you do need to complete a Form W-4 for each employer.  You may enter the additional income on Step 4a from all your investments and capital gains.  Part time job is not Self-employment income if you are getting a W-2 for it. 

I hope this helps!