I received a $225 penalty for underwithholding in 2022. I don't mind owing money for taxes due on April 15 (I would rather have the money earning interest in my savings account), but I don't want to pay a penalty for underwithholding. How do I adjust my W-4 to withhold just enough additional money to avoid an underpayment penalty in 2023?
I expect my income from my job to remain essentially the same in 2023. My Social Security Retirement benefits increased 8.7%, as per the annual COLA.
I would love to schedule a meeting with a tax expert to walk through the W-4.
Thank you.
Amy
