Extra Withholding

Forum|Forum|3 years ago
May 24, 2023
3 replies
5 views

My wife and I work for two different companies, and Federal and State taxes are deducted from our respective biweekly paychecks.

Per the instructions in Form W-4, we used the Deductions Worksheet to determine and specify the amount of extra withholding per paycheck.

Given that taxes are deducted from our paychecks, does there need to be additional withholding?

Ask the Experts - W-4 - May 2023

Donna F 77

Level 6

According to IRS, if you fill out the W-4 completely, then you should have enough tax withheld from your paychecks. However, sometimes it's hard to estimate your actual income if you receive any income from sources other than your paychecks. It will probably benefit you to put your information into the IRS Tax Withholding Estimator to make sure that it also agrees with the info on your W-4 forms. Here's a link to the IRS Tax Withholding Estimator:
https://www.irs.gov/individuals/tax-withholding-estimator

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crodjom1

Level 2

Hi @Spaceman404,

Great question!

The answer depends on whether you had a balance due or a refund at last year end. You would want to add additional withholdings if you owed at the end of the prior year to avoid any penalties and interest. A great tool to use would be our Turbo Tax W4 calculator. Here is a link to the tool:

Turbo Tax W4 calculator

The tool will help you estimate how much of additional withholdings maybe needed for 2023 based on your current W2 information.

I hope you find this information helpful and feel free to ask more questions. We'd be happy to help!

Spaceman404Author

Level 2

Thank you for your responses, @Donna F 77 and @crodjom1. If I pay extra withholding up front (as part of W4), will the amount of taxes automatically captured in my paycheck towards the end of the year reduce?

Tax Hero Niki

Employee Tax Expert

Hi Spaceman404! If you pay extra withholding upfront (as part of W-4), then it will be reported on your W-2, and included as a factor when filing your taxes. Are you saying you might temporarily set it up for additional withholdings? If you add on additional now, it will not reduce the amount withheld later.