I have been using TurboTax to file my income tax returns for the past eight years. I was assessed a penalty for my 2023 return because of ostensibly underwithholding of tax. I assume this may be because of additional interest I earned from holding bank certificates of deposit (CDs) (time accounts) the last three months of 2023. I continue to hold these CDs in 2024, and probably will for the rest of this year.
I began the process of trying to complete an IRS Form W-4 as well as their online calculator, but the instructions are confusing. On the IRS W-4 calculator, do we declare our gross or net wage earnings? I could not find anywhere on the IRS website which discusses this. So I then printed out the relevant IRS worksheets from their website, and proceeded to fill in the hard-copy forms amounts, but once again, the offered instructions are confusing.
I am retired and receive both a state of NC pension as well as Social Security benefits, and want to make sure I'm being withheld for taxes at the correct level. Can anybody help me with this or answer any of the questions above? Thank you for any help.
