Good afternoon, and we thank you for joining us, OldHarley41!
You asked, "Do we proceed to increase withholding on our pension percentages or wait it out and see how taxes look this year?"
First, I would like to say you good job to you on being proactive by reviewing your tax withholding amounts to ensure there will be no unpleasant surprises when it comes to tax time.
Considering your specific situation, and being that your spouse is now fully retired, you could potentially see a lower tax liability overall, which would lower tax liability and therefore it may not be necessary to make any adjustments to withholdings, especially when you calculate in the fact that you are wisely, making estimated tax payments. That having been said, I would still strongly suggest using a tax estimator calculator to best determine where you are at this point in terms of your tax liability and withholdings, to see if you need to make changes to your withholdings as soon as possible, and then adjust as necessary using the form W-4P, for pension income and the form W-4 V, for social security income.
For additional information on determining withholdings and tax estimations, please click on the links below:
Please feel free to reach backout with any additional questions or concerns you might have!
Have a great rest of your day!
Terri Lynn, EA
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