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If the side job is just $2,000 a year and the W-4 is showing that you are not making enough to have deductions taken out, you can add to your quarterly estimated taxes based on your tax rate.  For example if your tax rate is 10% year, you would want to pay in an estimated $200  a year over the 4 quarters.    

Thank you for the quick reply. So I input my investments and got new adjustments and withholdings for federal. My question now is about my state specific taxes (AZ). I owed a few hundred dollars in state taxes for 2024 while having my withholding percentage set to the max (3.5%). How do I go about calculating how much additional withholding I need so I don't owe state taxes again?

With you making only about $2,000 from this job, I have to assume the rejection of the non-acceptance of the W-4 is due to the amount you make, which is well below the standard deduction of $15,000 for single and $30,000 for married filing jointly.      I would just build the $2,000 of income into the estimated taxes you already pay, though you may want to ask your employer what the defaults in the Square system are.  They may have a better idea as to why.    Thank you for question @Mingo08    All the best,   Marc T. TurboTax Live Tax Expert 28 Years of Experience Helping Clients

Lets start with the  income tax rates here.  The marginal income tax rates are found here:  2024-2025 Tax Brackets and Tax Rates.   Being single in 2025, the standard deduction is $15,000 for tax year 2025.   That would mean that your taxable income is $175,000 with income of $190,000.  So using the tax brackets, the taxable income above $103,551 is taxed in the 24% tax bracket.      Since you have a bonus as part of this pay, you need to understand that there are two ways that the income taxes can be withheld on a bonus:   The percentage method. Is withheld at 22% for federal income taxes.  Above $1 million it is done at 37%. The aggregate method. Employers that issue bonus payments along with regular wages in one paycheck can withhold taxes on the entire payment as though it’s a single paycheck in a regular payroll period.  Ultimately you do pay a good amount in taxes.  Since I am assuming "killing" refers to the overall taxes and not the actual amount owed in your scenario, since at this income level the income taxes for Federal are about $30,500 and the FICA tax is another $13,200 or so.  This does not include any state tax either.     If it refers to the amount actually owed when filing, you will need to investigate what method your employer uses, and then make adjustments accordingly to account for the bonus component of your pay.   With $19,000 being deferred into a a 401(k), assuming it is pre-tax, which I did, you could raise the level depending upon your age as well.   The limits are as follows:   In 2025, the maximum 401(k) contribution is $23,500 for those under 50. If you are 50 or older, you can contribute an additional $7,500, for a total of $31,000. Individuals aged 60-63 can contribute an additional $11,250, bringing the total to $34,750   Thank you for the question @bscerbo1    All the best,   Marc T. TurboTax Live Tax Expert 28 Years of Experience Helping Clients

The W-4 system changed significantly in 2020, so the "4" allowances you used to claim no longer exist in the same way. The goal of the new W-4 is to make withholding more accurate without relying on a subjective number of allowances. Understanding the New W-4 (Post-2019): No more "allowances": The new W-4 focuses on your filing status, dependents (if any), other income, deductions, and credits. The IRS's aim is for taxpayers to have their withholding as close as possible to their actual tax liability, minimizing large refunds or amounts due at tax time. Strategies to Lower Withholding with Your Income and 401(k): Filing Status: Since you file as "Single with no dependents," this is straightforward. Check the "Single or Married filing separately" box in Step 1. Account for Your 401(k) Contributions (Step 4(b) - Deductions): Your 401(k) contributions are pre-tax, meaning they reduce your taxable income. This is a significant factor in your tax planning. Estimate your annual 401(k) contribution: If you earn $190,000 and contribute 10%, that's $19,000 annually. For 2025, the 401(k) contribution limit is $23,500. If you can, consider increasing your contributions to maximize this tax-advantaged savings, especially with your income level. Use the Deductions Worksheet (Page 3 of Form W-4): This is where you'll account for your 401(k) contributions. Standard Deduction: For a single filer in 2025, the standard deduction is likely around $14,600 (this value updates annually, so confirm the exact 2025 amount when you complete the form). Enter your 401(k) contributions: In the deductions worksheet, you'll enter the amount of your estimated pre-tax 401(k) contributions for the year. Total Itemized/Other Deductions: Compare your standard deduction to your itemized deductions (which for most people, particularly those not itemizing, primarily consist of pre-tax retirement contributions). If your itemized deductions (mainly your 401k) exceed the standard deduction, you can add the difference to the "deductions" line in Step 4(b) of your W-4. Example: If 2025 standard deduction is $14,600 and you contribute $19,000 to your 401(k), you have $4,400 in additional deductions ($19,000 - $14,600). You'd enter $4,400 in Step 4(b). This tells your employer to withhold less because a portion of your income is already tax-free. Address Quarterly Bonuses (Step 4(a) - Other Income (Optional)): Bonuses are taxed as supplemental wages and can be subject to a flat 22% federal withholding rate, or they might be combined with your regular wages and taxed using the aggregate method (based on your W-4). The challenge: When your employer applies the withholding rules to your bonus pay, it might assume that paycheck represents your regular income level throughout the year, leading to over-withholding on the bonus. Strategies for bonuses: Do nothing on the W-4 for bonuses: Your employer will likely withhold a significant amount from your bonus checks. This often leads to a larger refund, which you've experienced. If you prefer a larger refund, this might be okay. Adjust Step 4(a) - "Other Income (Optional)": This step is usually for un-withheld income (like freelance work). However, some people might reduce their standard withholding slightly in anticipation of over-withholding from bonuses, essentially "pre-empting" the extra tax taken. This is more advanced and requires careful monitoring. Most recommended: Use the IRS Tax Withholding Estimator (see below). This tool is designed to handle fluctuating income like bonuses. Additional Withholding (Step 4(c) - Optional): This section allows you to have additional tax withheld. This is the opposite of what you want right now, but it's useful if you ever find yourself under-withheld. The Most Important Tool: IRS Tax Withholding Estimator Given your income level, quarterly bonuses, and 401(k) contributions, a tax withholding estimator will be needed. I recommend using the IRS Tax Withholding Estimator. How it works: You'll input details about your income, filing status, dependents, pay frequency, existing withholding, and most importantly, your 401(k) contributions and expected bonus amounts. It provides a recommendation: The estimator will calculate your projected tax liability and recommend exactly how to fill out your W-4 (including any amounts for Step 4(a) or 4(b)) to get your withholding as close as possible to your actual tax. Re-run it periodically: Since you have quarterly bonuses, it's a good idea to use the estimator at least once a year, and potentially after a large bonus, to ensure your withholding remains accurate. Summary for Lowering Taxes Per Paycheck: Use the IRS Tax Withholding Estimator: This is the most accurate way to tailor your W-4 to your specific financial situation, including your bonuses and 401(k). Maximize 401(k) Contributions: Continue contributing 10% or more. This is a primary driver of tax savings on your paycheck. For 2025, the limit is $23,500. Complete the W-4 Deductions Worksheet: Ensure you accurately reflect your 401(k) contributions in Step 4(b) of the W-4. Review your pay stubs: After submitting your new W-4, monitor your pay stubs to see the impact on your net pay and ensure the withholding is where you expect it to be. By following these steps and utilizing the IRS estimator, you should be able to optimize your withholding to take less out of each paycheck while avoiding a large tax bill at the end of the year. Helpful Links: IRS Withholding Estimator  W4 and your Take Home Pay  How bonuses are taxed  Please feel free to reach backout with any additional questions or concerns you might have! Thank you for joining us today and have an amazing rest of your day!   **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer.”    

The IRS has no record of the 1099s being submitted or rejected, either on the individuals account, or the Estate account. As I mentioned in an earlier post, the Estate account name and address has the name of the estate as the first line, and my name followed by EX , as executor as the second line, the last two lines are the street and city address. QEF will not let me enter two lines for the Name, to allow the inclusion of the second line with my name as on the SS-4. Is there any way to add this using QEF, as this is the only other possible difference in the information? Could there be a problem that the "Business" Payer is the deceased individual, and not a true business? If I need to file manually, can printed forms from the QEF site be used, or must I order the forms from the IRS? I am very frustrated and would appreciate some help if at all possible.

Good. Make sure to save all the .pdf options and the .tax file from that 2023 and put somewhere safe, encrypt if you can and save to multiple drive types so you have copies. I will be looking out next year for any possible issues like this if I open my 2024 TT. Never had a problem before but never had the download TT before either. 

From the IRS's perspective, it makes absolutely no difference whether the additional $2,600 over the year comes entirely from your paycheck or is split between you and your wife's paychecks. The IRS only cares about the total amount of federal income tax withheld by December 31st. It often makes sense to put it on the W-4 of the higher earner or the one whose payroll system is easier to adjust.    If all on one paycheck, you only need to update one W-4 form. This means less administrative work for you and your wife. Only one employer's payroll system needs to be updated and verified.   @nhjacobs Hope this helps!! Thanks again!!

Sounds like TT didn't have your correct 2023 tax info if you were getting interview prompts stating it was zero when it wasn't actually zero.  Usually this is carried over from prior year return, if not you have to input it.  When you go to Other Tax Situations / Underpayment Penalty after the Farming/Fishing question (assuming this was No) it then asks for filing status and "2023 Tax Liability for 2210 Purposes", if incorrect you would enter the correct figure there.  TT would then calculate the penalty based on 90% of 2024 if that was smaller etc, and then you can go thru the AI method similar to state.

Thanks so much for the response. To follow-up, is there any pro/con of my doing this just on my pay-check as opposed to my wife and I each submitting updated W-4 forms, to withhold $50 from each of our paychecks instead of just $100 from mine? 

Yes, that's a very common and generally effective strategy to address consistent under-withholding, especially if your income, deductions, and credits remain relatively stable year-to-year.   If you've consistently owed $2,500 for the last two years, it indicates a recurring shortfall in your withholding. By instructing your employer to withhold an additional $100 from each bi-weekly paycheck ($100 x 26 pay periods = $2,600 over the year), you're directly compensating for that historical underpayment. Update Your W-4 Form: On your W-4 form, go to Step 4(c) and enter the additional amount you want withheld per paycheck. In this case, you would enter $100 Use the IRS Tax Withholding Estimator: After you've made the change, still take the time to run the estimator. Input all your current year's estimated income (including expected bonuses) and the fact that you've just added $100 extra withholding. The estimator will then confirm if that $100 is likely sufficient, or if it recommends a slightly different amount for precision.   @nhjacobs Thanks for the question!!    

How Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) factor into your W-4: Health Savings Account (HSA) Contributions and Your W-4 How it works: HSA contributions, when made through your employer's payroll (via a "cafeteria plan" or Section 125 plan), are typically deducted from your pay before federal income tax, Social Security, and Medicare taxes (FICA) are calculated. This means your taxable income for withholding purposes is already reduced. W-4 Impact: Because these contributions are already excluded from your taxable wages before your W-2 is even generated, you generally do not need to specifically enter these deductions on your W-4. Your employer's payroll system should automatically account for this pre-tax reduction when calculating your withholding. Exception (less common): If you make HSA contributions outside of your employer's payroll (e.g., directly to an HSA provider from your bank account), these are tax-deductible when you file your tax return (on Form 1040, Schedule 1). In this specific case, you could account for these additional deductions on Step 4(b) of the W-4 ("Deductions") to reduce your withholding. However, for most people contributing through their employer, it's already handled. Flexible Spending Account (FSA) Contributions and Your W-4 How it works: Similar to HSAs, contributions to Flexible Spending Accounts (FSAs) – both Health Care FSAs and Dependent Care FSAs – are almost always made through pre-tax payroll deductions. This means the money you contribute to an FSA is taken out of your paycheck before federal income tax, Social Security, and Medicare taxes are calculated. W-4 Impact: Because these contributions are already excluded from your taxable wages reported on your W-2, you do not enter FSA deductions on your W-4. Your employer's payroll system automatically adjusts your taxable income for withholding purposes. Important Note for Dependent Care FSA: While the contributions reduce your taxable income, if you have a Dependent Care FSA, you'll still need to report the employer's contributions (usually in Box 10 of your W-2) and the related expenses on IRS Form 2441, Child and Dependent Care Expenses when you file your tax return. However, this doesn't change your W-4 withholding. General Rules for These Type of Deductions in Terms of Your W-4: HSA (via payroll): No, your employer's payroll already accounts for it. HSA (direct contributions outside payroll): Yes, you could account for these on Step 4(b) if you wish to reduce your withholding. FSA (Health Care or Dependent Care): No, your employer's payroll already accounts for it. Regarding Estimating Medical and Dental Expense: Yes, when estimating medical and dental expenses for tax purposes (e.g., for itemized deductions), you can generally total all qualified expenses. This includes: Premiums (for medical and dental insurance, subject to certain limitations) Deductibles Copays Other out-of-pocket expenses for diagnosis, cure, mitigation, treatment, or prevention of disease. Both prescription medications and qualifying over-the-counter medications (if prescribed or for a specific medical condition and not for general health). Tools and devices (e.g., crutches, wheelchairs, eyeglasses, hearing aids) if primarily for medical care. Useful Links: Form W4 and Take Home Pay   Understanding your withholding allowances   Please feel free to reach backout with any additional questions or concerns you might have! Thank you for joining us today and have an amazing rest of your day!   **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer.”

No. But I use a win 10 comp that is pretty much just used for taxes. I bought it when TT stopped supporting win 7 and I hate win 10 so I use it very rarely. I do update now and then and make sure that all updates are done before I do taxes. I did have problems with it updating win 10 and just freezing in process several times when I did updates before I went back to doing TT. Took me awhile to get back to taxes a few times. Turned out since it would not load to connect to WiFi so I plugged it in with cat 5 and restarted it and worked fine. Just had to do it a few times. I think it may have shutdown before doing a complete update so when started up it needed to update but could not load WiFi drivers. Who knows 🙄   I ran the TT quite a few times since I get it in Dec and just do rough taxes from all my data and wait for all my W, 10s and other stuff to come in. Once that is done I save the .tax and ALL .pdf and wait till mid march to file just in case we have another late update. I did file in Feb though this year but will wait next year due to this stuff they are doing in congress and whether they get it done before the end of the year so the IRS and State are updated in time. If you went to that link and read the posts about the $10,200.00 you will see what I mean. I only let TT update until I finish and ready to send. That year I waited till late march for the update and the day I mailed it when I got home 10 minutes later my sister sent me a txt that the update came in ha ha ha. I checked TT and it had it but I was to late even though I had checked it that mourning. 🤣 Question: Are you going through it with the guide or manually, and do you start from scratch or let it pull your info from the previous years .tax file ?   Just wondering.   If you do get it figured out as to what happened come back and let us know it may help others.

The best way to predict if you will owe taxes or not is to do a Tax Estimator. Here are the two I recommend: IRS Tax estimator This is a tax estimator that will time out so enter and print findings all at one sitting. TaxCaster  This is another tax estimator that will time out so enter and print findings all at one sitting.   This will give you an idea of what to expect when you do your taxes for 2025.   Then, if you need to change your W4s, you can use these links: How to fill out a W4  Instructions on how to fill out a W4 W4 calculator  Use to help fill out a W4 Form W4  Actual W4.  Line 4c is where you would add extra withholdings from each check. If you make changes to your W4s, you can do as many tax estimators as you like after you have made the changes to see how those withholding changes are making the amount owed or refunded go up or down.   If you keep owing, then sometimes you leave everything the same on the W4 but add extra withholdings to 4c of the form.  Let's say you owe $1000 next year after changing your W4s.  Then take $1000/ (number of pay periods in the year) and put that amount on 4c.  Ex.  1000/52 (paid every week)=19.2 or rounded up to $20 per pay period.   Katie S   For the state, it is hard to find an estimator but you could figure the tax rate for the state and do the estimate yourself.  You could also call your state and ask them how they would suggest you figure out an estimate.   Katie S