1. Gather ALL necessary information required:
- Paystubs for ALL jobs (spouse too)
- Other income info (side jobs, self-employment, investments, etc.)
- Most Recent Tax Return.
2. Please remember that UNDERPAYMENT OF ESTIMATED TAX PENALTIES can be avoided if:
- You owe LESS THAN $1,000 after subtracting withholdings and credits, OR
- If you paid the smaller of:
-> AT LEAST 90% of the Tax for the CURRENT YEAR Tax Return, OR
-> 100% of the Tax from the PRIOR YEAR Tax Return.
3. Using your paystubs you can estimate if you you are going to owe any taxes and you make
adjustments on your IRS Form W-4 accordingly. In addition, the IRS (and others) provide a
calculator to perform these estimates.
About Form W-4, Employee's Withholding Certificate
Tax Withholding Estimator
** Say "Thanks" by clicking the thumb icon in a post
** Mark the post that answers your question by clicking on "Mark as Best Answer"
