For 2025, you can update your W-4 by adding an additional amount to be withheld on Line 4(c). To calculate the amount, and assuming your income will be closes to the same amount, use the balance due for 2024, divide it by the number of pay periods left and enter that amount on your W-4, Line 4(c). Everything else should remain the same.
You can change this form as many times as you need to and the employer must make the changes. Keep in mind that your net pay will be less by the amount you enter.
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.
If estimated tax payments are chosen, you must be sure to make the payments evenly because even a refund return can have a penalty if the payments are late.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
