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Level 2
March 19, 2025
Question

How to address unknown tax burden

  • March 19, 2025
  • 9 replies
  • 74 views

For the last three tax years, my wife and I (who file married, jointly with one dependent) have owed taxes at tax season. The initial two years we owed roughly 2-3k. During tax season last year, I spoke directly with a Turbotax representative to figure out the issue. Their opinion was that we needed to redo our W-4s to adjust our tax our respective tax withholdings so we would overcontribute and receive a return for the 2024 tax year. We both followed his advice which was to remove the dependent on our W-4s. However, this year we owe almost double what we owed the previous two years (between 6 and 7k this year). How do I actually figure out what the issue is? Is there a way to assess which one of our jobs is not withholding the desired amount? I've tried using the IRS withholding calculator but it only seems to provide a recommendation on what to withhold in the future.   

 

9 replies

JohnB5677
Level 15
March 19, 2025

The advice the agent gave you will increase your withholdings from your paycheck.

 

  • Did you include your dependent on the ax return?
  • You should.
  • The W-4 was only to have additional tax withheld, NOT to take away your dependent!

If I misinterpreted this, please reply with additional information.

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Khr77Author
Level 2
March 19, 2025

 

Yes, I always claim my dependent when filing my taxes.   I was initially also indicating that I had a dependent on my W-4 (I was claiming a dependent on my W-4 because I have the higher income, my wife would just state that she was married filing jointly on her W-4).  However,  I was told by a turbotax rep previously that this was likely the reason why I was owing taxes when filing.   In other words, he thought that not enough tax was being withheld so (due to our status of married filing jointly and having one dependent) so he advised that we remove the dependent so more tax would be withheld.  

Level 15
March 19, 2025

That's not a bad idea. A simple solution to having the right amount of tax, if you income stays the same roughly, is to take your balance due, divide it by the number of pay checks remaining and list that as 'an additional amount' to withhold from each check.

 

For now, if you changed your W-4, don't make changes until you see the difference in your federal withholding. Once you see an adjustment you will know if you need to add a flat additional amount on your W-4 (line 4(c).

 

@Khr77 

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