There are many reasons why you might owe this year:
- Starting an additional job (especially self-employment).
- Getting a significant raise, but your W-4 staying the same.
- Adjusting your withholding to maximize your take-home pay.
- Selling stock, crypto, or other investments.
- A change in filing status.
- Receiving unemployment benefits, but not having taxes withheld.
- Taking an early withdrawal from your retirement account.
- Having a child turn 17 in 2023, now receiving the Credit for Other Dependents instead of the Child Tax Credit.
- Started receiving Social Security benefits or Roth IRA distributions.
- Paying off your mortgage, so you can no longer deduct mortgage interest.
- Paying off your student loan, so you can no longer deduct the interest.
- Finishing school, so no longer eligible for certain education credits.
- Earning little or no income and not qualifying for the Earned Income Credit.
To adjust your state withholding allowance, go to the Employment Development Department (EDD) website and get Form DE 4, Employee’s Withholding Allowance Certificate
For your federal, go to the Internal Revenue Service (IRS) website and get Form W-4, Employee’s Withholding Allowance Certificate
Also you can generate your W-4 in TurboTax if you didn't file your return: How do I update my 2024 withholdings and print a new W-4?
If you are receiving income from sources other than a regular paycheck, you can make estimated taxes.
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