MiriamF
Intuit Alumni

Get your taxes done using TurboTax

If I understand you correctly, you claimed zero allowances on your W-4, yet you still owe tax.

The W-4 is only a crude estimate of how much tax needs to be withheld from your paycheck. For people who earn income in addition to their W-2, who have more than one W-2, who earn bonuses or commissions or who have a spouse that earns income, the estimate can be way off. 

Your best solution for next year is to file a new W-4 with your employer and request that additional tax be withheld on Line 6 of that form. To make sure that you don't owe tax next year, 

  1. Estimate next year's income and divide by this year's.
  2. Multiply the amount of tax you owe this year by the answer above.
  3. Divide the answer in step 2 by the number of pay periods remaining in the year and enter that number on Line 6 of the W-4.

Bear in mind that if you increase your withholding, you will decrease the size of your paycheck. Only you can decide the best answer.