Yes, that's a very common and generally effective strategy to address consistent under-withholding, especially if your income, deductions, and credits remain relatively stable year-to-year.
If you've consistently owed $2,500 for the last two years, it indicates a recurring shortfall in your withholding. By instructing your employer to withhold an additional $100 from each bi-weekly paycheck ($100 x 26 pay periods = $2,600 over the year), you're directly compensating for that historical underpayment.
Update Your W-4 Form:
- On your W-4 form, go to Step 4(c) and enter the additional amount you want withheld per paycheck. In this case, you would enter $100
Use the IRS Tax Withholding Estimator: After you've made the change, still take the time to run the estimator. Input all your current year's estimated income (including expected bonuses) and the fact that you've just added $100 extra withholding. The estimator will then confirm if that $100 is likely sufficient, or if it recommends a slightly different amount for precision.
@nhjacobs Thanks for the question!!
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