Hi @TheSkyrms ,
Thank you for joining us today! I recommend utilizing the W-4 Calculator . The more financial information you are able to enter into the calculator the more accurate your withholdings will be throughout the year. Yes, you are correct, Step 4 of the W4 allows you to request additional withholdings from your paycheck for the consulting income and the solar rebate that your received during 2024. You can use the additional withholdings instead of the quarterly estimated payments. Keep in mind that if you should continually monitor the self employment income so that you are accurately withholding. The W-4 can be updated as often as necessary to adjust for changes in income.
Yes you will also need to either increase your withholdings for your state or pay quarterly estimated payments.
Here is an additional resource for completing the W-4 TurboTax How to Estimate Federal Withholding
Thank you!
Melanie, CPA
