Hi @Anonymous
Most likely when you completed the W-4, the IRS tables estimated that your withholding should be zero since you will most likely pay little if any tax on your total income at the end of the year.
There are two parts to this question that need consideration. The first question is did you owe any taxes last year on your income? You can determine if you owed taxes by looking at your total tax on Line 24 of your Form 1040. This will give you an idea of the amount of taxes you owed prior to additional credits. If that number is zero, then you didn’t owe tax and your current W-4 is probably fine.
If you did owe tax, the second question is how do you update the W-4 form? One potential update is to reduce the amount on step 3 set aside for your dependents. If you followed the instructions and placed $4,000 in that location, then you could reduce the amount to $2000 or $0. Another option is to request additional withholding by placing an amount in 4(c) of the form. This will increase the federal withholding from your paycheck per pay period.
I recommend using the TurboTax W-4 tool to get the best results. I’ve added a link below for your reference and use.
W-4 Calculator - Free IRS W-4 Withholding Calculator 2021-2022 | TurboTax® Official (intuit.com)
Of course, if you have any questions, you can always call or chat with TurboTax to help. W-4 forms are an art and sometimes it takes a few tries to get it just right 🙂
Good luck and have a great day!
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