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Your W-4 does not go to the IRS. It is only given to your employer(s) to tell them how much tax to withhold from your paychecks. You want enough withheld to avoid owing at tax time. If you are satisfied with the way you filled it out in November you can leave it alone. If you want more tax withheld, you can change it and give the employers a new W-4.
https://turbotax.intuit.com/tax-tools/calculators/w4/
https://www.irs.gov/individuals/tax-withholding-estimator
https://www.irs.gov/pub/irs-pdf/fw4.pdf
It sounds like you should review your W-4 and give your new employer an updated form. You can use the Tax Withholding Estimator on the IRS web site to figure out what you should put on the W-4. It will show you how to adjust your withholding to get the approximate refund amount that you want.
Hello, I am not sure how to estimate/calculate that.The side gig job is not steady income, I get side gig jobs when I am able to get the different types of jobs from time to time , so how am I supposed to use the Tax Withholding Estimator calculator regarding the first job which is the side gig job and the second job which is my currently job I started a few days ago? Do I use the 2023 w-2 form from the side gig job for the tax withholding estimator calculator ? I am confused. Lastly, so it is optional if I want more tax withheld?
When you have income that varies, such as your side gig job, all you can do is make your best guess as to how much you will earn for the year. If you think it will be about the same as 2023, you can use that amount. Later in the year, if you find that you are making a lot more than you expected from the side gig job, you could revise your W-4 again.
Yes, it's up to you whether to have more tax withheld. But don't overdo it. Getting a large refund when you file your tax return just means that you gave the government a big interest-free loan. You let them take money out of your pay that you could have used during the year. Ideally you should try to have enough withheld so that you owe only a small amount on your tax return, or get a modest refund. You want to avoid having to pay a penalty for not having enough withheld, but there will be no penalty as long as the amount you owe on your tax return is less than $1,000, or you get a refund.
What xmasbaby0 is trying to tell you is that the IRS is not going to check your W-4 or tell you that you filled it out wrong. The amount of withholding is up to you.
Please note that when multiple people have posted, we can't tell who you are replying to unless you say it in your reply.
@rjs okay so I did receive refund this year after filing my taxes from 2023 from the w-2 form. I checked the irs website and on my account I see that there is a $0.00 of Total Amount Owed. Is that good or bad thing?Sorry I don’t mean to ask dumb questions, I just want to make sure I understand this and do the W-4 Form right. Since the side gig jobs is not steady income, then I’ll just leave step 4 blank and don’t check the box on step 2 (c) for the 2023 W-Form that I had before in 2023 for now since I already started the new job a few days ago and I’m not working a lot so far this year at the side gig job (staffing agency) ? For the W-4 2024 Form, l since I’m still employed for the side gig job (staffing agency) and I’m currently working at the new job, I can check the box for Multiple Jobs section for step 2 (c) ? I am choosing to not enter step 4, since it is optional.
A Total Amount Owed of zero in your IRS account is exactly what it should be. That's fine.
I can't advise you about specific lines of the W-4. The best advice I can give you is to use the Tax Withholding Estimator on the IRS web site, with reasonable estimates of your income from each job. And don't stress over it. The W-4 is not exact, and there is no precise right or wrong way to fill it out. It's just an estimate.
I did the Tax Withholding Estimator to do an estimate and the result stated: "Based on the information you entered, you’re withholding exactly the amount of tax you need to have a balance of $0." Is that supposed to be correct?
I don't understand what you mean by "supposed to be correct." It means that if your actual income and withholding for the year turn out to be exactly what you entered in the Tax Withholding Estimator, then on your tax return at the end of the year you will have no refund and no payment due. Your total withholding will be exactly equal to your tax for the year.
That, of course, is an estimate based on the information that you entered. Don't count on it coming out exactly that way. But it should be close. You should have a small refund or a small payment due. Of course, any difference between the actual figures for the year and what you entered in the Tax Withholding Estimator will change the results.
It's an estimate, not a precise calculation.
Oh okay, thank you. Sorry for the confusion, I meant to say "supposed to be correct" when I was trying to determine how to estimate it regarding the side gig job (staffing agency). Okay then since the Tax Withholding Estimator resulted in $0, I guess it will be estimated around that time, because I also plan to work a full-time job this fall season. So for a new w-4 form, my circumstances will change job wise by then.
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