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Get your taxes done using TurboTax
Tax withholding tables were updated this year and in the process some taxpayers had adjustments that went unnoticed throughout the year, but became quite obvious when it was time to file their tax returns.
This seems to be more pronounced in two-income households, or with single taxpayers whose income is over $150,000. We can't know for sure, but it sounds like this may have been the case for you as the extra capital gains income doesn't seem to explain a significant jump.
The best way to sort of drill down to where the issue may be is to compare your 2022 return with 2023 line by line to see where the differences lie. Pay close attention to the payments section and the withholding on line 25a.
If your withholding decreased from 2022 but your income didn't, then you definitely want to complete a new form W-4. Our withholding calculator may help. I suggest running through the calculator now to give an updated W4 to your employer and then marking your calendar to check again around mid-June or so with a recent paystub to check that you're on track.
Because the W-4 will adjust for any perceived under-withholding year-to-date you should repeat the process again in January to avoid having too much tax withheld.
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