Last 8/30/21 we moved from NY to CT. We bought a home for the first time.
I have two dependents, children aged 4 & 2 years old.
I'm married and file jointly (and have for over 6 years now).
And I started two new jobs in the last 10 months.
How can I know that I've been withholding the correct amount in my W4s?
I hope you are doing well today. You have had a lot of changes over the last year. The best way to determine if you are withholding the correct amount would be to request and submit an updated W-4 to your current employer. Typically, you complete a W-4 when you are hired by a new company.
The IRS significantly updated their W-4 form in tax year 2020. The update included some much needed changes that include calculations that take into account two (2) income households, dependents/child tax credit, and other income. Please find a link to 2022 Form W-4 below.
I would recommend using an online withholding calculator to determine the amount of tax you should be withholding from your household income. Be sure to include your dependents and income from your spouse/other sources. Then, I would apply the information from the withholding calculator to the W-4 for your current employer. Please find a link to Turbotax withholding calculator below.
Please note, if you are behind in withholdings due to an increase in pay or a previous error you can request that an extra amount be withdrawn from your pay each pay period to catch up. You can do this by completing Step 4, Line C, on the W-4.
Taylor, Tax Attorney, 12 Years
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