Hi, thepaulsri,
You can fine-tune your withholding and estimated tax payments for 2022 if you unexpected owed money to IRS when you filed your 2021 return.
IRS has a tax withholding estimator to help figure out if you have the right amount of income tax withholding from wages, pensions, IRA distributions etc. The tool asks about various sources of income, provides tips on tax credits and deductions, and estimates how much withholding to request.
Use this tool to:
- Estimate your federal income tax withholding
- See how your refund, take-home pay or tax due are affected by withholding amount
- Choose an estimated withholding amount that works for you
Results are as accurate as the information you enter.
Tax Withholding Estimator
https://www.irs.gov/individuals/tax-withholding-estimator
As you indicated, Federal and State tax results are not always in tandem. Hope the above will improve the Federal outcome for tax year 2022.
One other way is to leave W-4 as is since RI state withholding is good. If tax year 2022 is similar to that of 2021, you can use IRS Direct Pay to pay approx. $3,600 estimated tax payments (1/3 each on 6/15, 9/15, 1/17/2023) so the tax year 2022 filing result has less impact on your cash flow.
Hope the above helps.
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