How to adjust W4 to not owe next tax season?

[laurenbuse]

I recently changed jobs and got married. The past few tax seasons, I have had to pay more in taxes. I am hoping to get guidance on how I, and my partner, can complete our W4s so we won't owe next year. 

[KarenL4]

Hi, LaurenBuse,

Good for your for getting ahead of the game!  We have a tool for you.  You can easily get to the correct W-4  using our free W-4 calculator.  This Tax Caster may also be helpful. 

Another short-cut if things are fairly constant from last year is to take your under withholding amount (tax due last year) and increase your W-4 to withhold that amount over the remaining pay periods.  For example, if you were under withheld $1000 and you have 10 pay periods remaining, you can submit a new W-4 with additional withholding of $100/pay period.  That may not be perfect but can get you closer...

If you have additional questions, please post below. 

Please give a thumbs up to cheer below if this answer helps!

Best,

Karen

[laurenbuse]

Hello! Thanks for the reply. I went to utilize the W4 calculator, but most of the questions I am not yet able to answer as I have not yet gotten a paycheck through my new job. I know my salary, but I don't know the details of my withholdings. Any advice? 

[KarenL4]

Hi,

if this is your first job this year your YTD values would be zero. Please do make sure and add any other income (like unemployment, capital gains, interest or a pension distribution).  

The Tax Caster can also help you check yourself.  For example, if you use the W-4 calculator to start out with, you can use the Tax Caster in late September to check your progress...Sometimes things can get wonky in the first year of big changes.  

If the Tax Caster shows you are on-track, great. However, if it looks like you are off, you can use this shortcut.  Take any under withholding amount (Tax Caster projected amount due) and increase your W-4 to withhold that amount over the remaining pay periods.  For example, if you were under withheld $1000 and you have 10 pay periods remaining, you can submit a new W-4 with additional withholding of $100/pay period.  That may not be perfect but can get you closer...

If you have additional questions, please post below. 

Please give a thumbs up to cheer below if this answer helps!

Best,

Karen