Given the changes in your tax situation, it would be best to estimate your income and tax withholding now and not wait until you file your tax return. It is recommended that you estimate your inc...
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Given the changes in your tax situation, it would be best to estimate your income and tax withholding now and not wait until you file your tax return. It is recommended that you estimate your income and tax withholding throughout the year to avoid a tax due balance. The tax needs to be paid as the income is earned, rather than at the end of the year or when the tax return is filed. If the estimates indicate there will be a tax due balance, you can adjust your Form W-4 or make estimated tax payments. If you choose to adjust your Form W-4 with your employer, you can have an additional amount of tax withheld per pay period. To calculate the additional tax withholding, divide the amount of the estimated tax due balance by the number of pay periods. The additional tax withholding is entered on Step 4(c) of the Form W-4. For example, if you estimate your tax due balance will be $3000 and there are 6 remaining pay periods in the current year, the additional amount per pay period would be $500. Please note: This additional amount will continue to be withheld from your future paychecks until you adjust your Form W-4 to stop the additional withholding. If you choose to make estimated tax payments, you can make those payments online at IRS.gov. Quarterly estimated tax payments are due: April 15 for income earned January 1 to March 31 June 15 for income earned April 1 to May 31 September 15 for income earned June 1 to August 31 January 15 of the following year for income earned September 1 to December 31 A few resources: TurboTax and the IRS have withholding calculators available to assist with estimating income and tax withholding. Estimated Taxes: How to Determine What to Pay and When @user17581273726