Hi and good afternoon, Amr Ttx:
Yes, based on your situation and your anticipation of higher earnings it would be an excellent idea to opt to consider additional withholdings by submitting a new W-4, or maybe by making an additional estimated tax payment.
The best way to calculate the amount in my opinion would be to use a tax withholding estimator calculator. This will not only calculate where you are currently, but where you will end up if you continue, exactly as you are until the end of the year. I would also suggest using this type of tool to assist with your calculations, frequently, as you experience any sort of changes in earnings, credits or deductions.
Once you have an idea of where you will end up, you can then take the difference between your current wthholdings, and actual estimated tax, and divide it by the number of pay cycles left in the year. This will provide you with a rough estimate of the amount of additional withholdings you could request on your W-4.
Please keep that this is not an exact science but an estimate, and that there is no penalty for over payment of tax.
Here are some links to additional information and tools:
Thank you for joining us today and have a great rest of your day!
Terri Lynn, EA
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Terri Lynn
