Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Single employed full time 

do not own a house, no dependents, no assets 

15 Replies
Corrlich44
Employee Tax & Finance Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Based on your annual income, for 2022, the Standard Deduction for the minimum tax deduction the IRS provides for Single taxpayers will be $12950. A lot would depend on your personal financial lifestyle, which would dictate how much of your annual tax burden at year end is being under-withheld on your W-4. As long as you file your W-4 as Single, and possibly withhold a marginal amount of more Federal tax on Line 4c, nothing more would really be needed. And to also mention, unless you are receiving other forms of income (capital gains, dividends, interest, social security or other), none of those income items would be expected to withhold any Federal Tax, which is what you would use as a decision to withhold additional tax on W-4, Line 4c to cover you by year-end.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Not quite following you on what I need to do on W4. Salary in $50 K range and I do get SS. In debt

$30 k vehicle purchase. In Ct. no other assets can you be a little more clear?

Critter-3
Level 15

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

85% of your SS benefits will be taxable so you will have to adjust for that income on the W-4  OR  have withholding from the SS benefits.

 

 

Use the Tax Withholding Estimator on the IRS web site to figure out what you   should  put on the W-4 form that you give to your employers. It's much easier than using the worksheets on the form. It will let you adjust your withholding to get the approximate refund amount that you want.


Tax Withholding Estimator

 

You can ask us to withhold federal taxes from your Social Security benefit payment when you first apply.

If you are already receiving benefits or if you want to change or stop your withholding, you'll need a Form W-4V from the Internal Revenue Service (IRS).

You can download the form or call the IRS toll-free at 1-800-829-3676 and ask for Form W-4V, Voluntary Withholding Request. (If you are deaf or hard of hearing, call the IRS TTY number, 1-800-829-4059.)

When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. You can have 7, 10, 12 or 22 percent of your monthly benefit withheld for taxes.

Only these percentages can be withheld. Flat dollar amounts are not accepted.

Sign the form and return it to your local Social Security office by mail or in person.

If you need more information

If you need more information about tax withholding, read IRS Publication 554, Tax Guide for Seniors, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

If you have questions about your tax liability or want to request a Form W-4V, you can also call the IRS at 1-800-829-3676. (If you are deaf or hard of hearing, call the IRS TTY number, 1-800-829-4059.)

VolvoGirl
Level 15

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Just check W4 step 1 (c) for SINGLE.  That's all.  Do you have other income like interest and dividends?  Do you have any withholding taken out of your Social Security?  

RSUMan
Employee Tax Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Given your salary, 85% of your SS benefits will be subject to Federal income tax.  If you are not withholding Federal income tax from your Social Security benefits, you will need to increase withholding at your work.

Corrlich44
Employee Tax & Finance Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

The information you provided makes the picture much clearer. Since 85% of your Social Security Benefits are taxable, are you withholding any federal tax on your monthly payments received? If not, that is where you may be coming up short, if at at all. Since the first $12950 of your $50,000 in wages alone, will not be taxable, the first $10275 above that will be taxed at 10% and the next $26,775 of your wages will be taxed at 12%. None of this includes 85% of your Social Security Benefits which could leave as much as $4725 taxable at 12% and the excess taxable at 22%. The question then is, are you withholding any Federal tax to offset 85% of your Social Security Benefits?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Great thank you fir that great response 

Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Oh sorry I do not have any other income and I do have taxes taken out of SS. Thx!

Corrlich44
Employee Tax & Finance Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

No problem.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Corrlich44
Employee Tax & Finance Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

With regard to the Social Security Benefits, having a blended rate of 20% for Federal Withholding Taxes may be more prudent in the long-run because your income tax is based on all income and not individually.  So, for the additional income you are receiving from those benefits and the bracket it is pushing you up into, withholding a minimum of 15% to 20% on the gross amount (or the effective rate on 85% on the gross benefits, which is where the truly taxable amount is arrived at), would your best measurement of covering you by year-end.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Thanks so much can you recommend how I get on a payment plan for this past years taxes? I may be too late to ask thx

Corrlich44
Employee Tax & Finance Expert

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

https://www.irs.gov/payments/online-payment-agreement-application

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Techie711
Level 1

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

I am not sure if I am withholding federal I will check into that. 
thsnk you for this forum 

Critter-3
Level 15

How can I avoid owing taxes at the end of the year? Single employed full time 68 years old thx

Dynamic AdsDynamic Ads
Privacy Settings
v