I am eligible for $7500 federal tax credit for purchase of electric vehicle. Year to date my federal tax payment is much more than $7500. Can I update my W4 to not withhold any more federal taxes?
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You should be able to fix your w-4 to decrease taxes withheld then as you expect to owe less than $1k.
You can claim as many allowances as warranted by your personal situation. Another way to increase your withholdings is to put the actual amount you want deducted on Line 6 (“Additional Withholdings”) of the W-4.
So you can increase the allowances claimed......don't forget to fix it for next year though.
you don't give enough information as to what your tax liability is. A $7500 credit and $7500 paid in may or may not meet your tax liability.
You can always update your w-4 and claim more exemptions but, do note if you did not have enough taxes paid in you could end up subject to interest and penalties depending on your income level. Failure to pay proper estimated tax - when you don’t pay enough taxes due for the year with your quarterly estimated tax payments, or through withholding, when required:
My federal tax liability is 18k. Year to date I have paid 16k in federal taxes.
You should be able to fix your w-4 to decrease taxes withheld then as you expect to owe less than $1k.
You can claim as many allowances as warranted by your personal situation. Another way to increase your withholdings is to put the actual amount you want deducted on Line 6 (“Additional Withholdings”) of the W-4.
So you can increase the allowances claimed......don't forget to fix it for next year though.
Must the $7500 credit be used only at tax time?
If I owe $18k in federal taxes for this year and I have a $7500 tax credit. Doesn't that mean I owe $10500 tax and I can stop tax deduction from my paycheck for rest of this year as I have already paid $16k?
did you read my last answer? Yes and I gave you how and a link....
Do you have a question?
It seems the w-4 form has now changed, and there is no more allowances.
Would anyone know how to adjust your new W-4 for a $7500 tax credit?
If you are looking to adjust for 2021 this late in the year then DON'T ... if you don't change it back in January you will be really sorry next year.
Use the Tax Withholding Estimator on the IRS web site to figure out what you and your husband should each put on the W-4 forms that you give to your employers. It's much easier than using the worksheets on the form. It will let you adjust your withholding to get the approximate refund amount that you want.
No. The w-4 is for next year. My job is making me fill a new one out due to new payroll company, and I am completely lost on exactly what I'm suppose to do. The Tax Withholding Estimator is not helpful as it is making a estimate based on last year's pay.
Does anyone have a good idea on how to calculate the number yourself? Is there a tax withholding estimator on TurboTax?
@user17: If you want to stop payroll withholding for the rest of the year, you can submit a W4, write "Exempt" in the space below Line 4(c). But like @Critter-3 mentioned, remember to submit a new W4 in January next year, so you don't get in trouble for not withholding in the new year.
Also, it looks like the Tax Withholding Estimator only shows me how much I will owe, not what to fill out my W-4 as.
Then you will need to fill in the W-4 using the worksheets on that 4 page form. https://www.irs.gov/pub/irs-pdf/fw4.pdf
If you are single and have no other job and no dependents simply click on the single box and leave the rest of the form blank. Put your name on the top, sign the bottom and hand it in.
Good morning
Yes I do have an question in regards to adjusting my W4 in order for me to take out federal withholdings with hurting my net pay as much.
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