It's a choice, however it is considered as being withheld evenly throughout the year regardless of when it was actually withheld so you can use the best option for your situation.
Exceptions to the penalty:
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
- 90% of the total tax after credits for the current year, or
- 100% of the total tax after credits in the prior year
- See one exception below.
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.
it may be a good idea to update your W-4 so that you will be set for 2024 once you see what you need. Consider how many pay periods you have left in the year and once you decide how much more you need to have withheld you can divide that by your remaining pay periods and simple add this to line 4(c). Keep in mind this will reduce your net pay.
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