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Get your taxes done using TurboTax
If your income, deductions, and credits remain relatively stable from year to year, then the amount you owed last year is a good indicator of how much you under-withheld. By taking that total amount and spreading it out as additional withholding over the year, you're essentially ensuring that the "missing" tax from previous years is now being collected. Enter this additional amount on line 4(c) of your W-4 form to increase your withholding. By increasing your withholding, you're less likely to fall short of the 90% current year / 100% prior year safe harbor rules for avoiding underpayment penalties.
Use the IRS Tax Withholding Estimator:
- This tool can help you determine the precise amount to withhold based on your combined income, filing status, and other factors. It’s especially useful for accounting for bonuses and other variable income. https://www.irs.gov/individuals/tax-withholding-estimator
- https://turbotax.intuit.com/tax-tools/calculators/w4/
- How do you fill out Form W-4?
@DSB33629 Thanks for the question!!
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3 weeks ago
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