Hi, thanks for being here.
To avoid owing money in the future you should adjust your withholding so that the right amount of federal and state income tax is taken from your paychecks throughout the year. Here are a few ways to do that:
1- use the IRS tax withholding estimator Google "IRS withholding Estimator"
2- Update form W-4 with your employers and fill out the form with the correct information and update any extra withholding suggested by the estimator
3-Consider other income sources such as 1099s, other W2s, Investment income etc..
Please let me know if you need more information.
You should report any additional income earned from a second job on the highest earners Form W4 and increase the withholdings in the extra withholdings section of the Form W4. You will locate the appropriate amount in the worksheet for multiple jobs found in the instructions.
For married taxpayers, coordinating the withholdings is essential, given the potential combined income to affect tax brackets and tax liabilities. The goal is to withhold enough to match your tax liability, avoiding both a large tax bill and overpaying, which effectively gives the government an interest-free loan.
Key Steps to Adjust Withholdings
To ensure you and your spouse do not owe money each year:
Additional Resources
Have an amazing day! Zachary W (CPA 9+ years)
I would love a thumbs up 🙂 + Mark the post that answers your question by clicking on "Mark as Best Answer"
Hi, thanks for being here.
To avoid owing money in the future you should adjust your withholding so that the right amount of federal and state income tax is taken from your paychecks throughout the year. Here are a few ways to do that:
1- use the IRS tax withholding estimator Google "IRS withholding Estimator"
2- Update form W-4 with your employers and fill out the form with the correct information and update any extra withholding suggested by the estimator
3-Consider other income sources such as 1099s, other W2s, Investment income etc..
Please let me know if you need more information.
You should report any additional income earned from a second job on the highest earners Form W4 and increase the withholdings in the extra withholdings section of the Form W4. You will locate the appropriate amount in the worksheet for multiple jobs found in the instructions.
For married taxpayers, coordinating the withholdings is essential, given the potential combined income to affect tax brackets and tax liabilities. The goal is to withhold enough to match your tax liability, avoiding both a large tax bill and overpaying, which effectively gives the government an interest-free loan.
Key Steps to Adjust Withholdings
To ensure you and your spouse do not owe money each year:
Additional Resources
Have an amazing day! Zachary W (CPA 9+ years)
I would love a thumbs up 🙂 + Mark the post that answers your question by clicking on "Mark as Best Answer"