How do I avoid owing tax if I already withhold at the highest rate?

Yes, it's still possible to owe taxes when you file even if you have taxes withheld at the highest rate from your wages. 

 

The new W-4 form is more comprehensive and takes into account additional income. You can use that tool to review your W-4, or you can make estimated tax payments.

 

Both of those options are part of TurboTax. Here's how to find those sections:

 

 

1. Sign in to your TurboTax account.
2. If you have already filed your return, select Add State to get back into your return.
3. Select Other Tax Situations.
4. Expand Other Tax Forms and find Form W-4 and Estimated Taxes, click Start or Revisit to the right.
5. If you want to go over your W-4 form, answer Yes to the question Do you want to change your W-4 withholdings for 2024?
6. Answer the remaining questions according to your situation.
7. Once you are done, if you also want to review your estimated tax, select Review Now on the next screen.
8. Answer the questions about your 2024 filing status, expected income, and deductions.
9. On the screen titled, Which Method? Select one of the 2024 options, not the first option.
10. When you come to the Print Vouchers? screen, answer Yes and the program will include your 2024 1040-ES payment vouchers when you print a copy of your return.
    
     

 

• give your employer a new W-4 with some amount on 4(c)
• make estimated tax payments

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