SwapnaM
Employee Tax Expert

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:

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