Hi @kerimel81 ,
Accurately estimating your withholding is essential to ensuring the right amount of taxes are deducted from your paychecks and avoiding surprises at tax time. Follow these steps to calculate and adjust your withholding effectively:
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Use the IRS Tax Withholding Estimator – This tool helps determine the appropriate withholding based on your combined income, deductions, and tax credits.
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Check Box 2(c) on Your W-4 – If both of you work, marking this box ensures withholding is adjusted for multiple incomes.
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Complete the Multiple Jobs Worksheet – Found on Page 3 of the W-4, this worksheet helps determine whether additional withholding is necessary.
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Adjust Additional Withholdings in Step 4(c) – If your calculations indicate that extra withholding is needed, enter that amount in this section.
Additionally, consider using TurboTax's withholding calculator to estimate your tax liability. If you prefer not to adjust your paycheck withholding, you can make estimated tax payments directly to the IRS instead.
By correctly setting up your W-4, you can avoid underpayment penalties and ensure you’re not over-withholding.
Good Luck!
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