I started working after being unemployed. How to update my husband's W4?

[Poppypinkish]

Hello!

I was unemployed from 2019- August 2021 due to taking care of a sick family member. My husband was our only source of income so when we filled out his W4 (the new version), it was easy because he was the only one working and we didn't need to figure out all of the calculations. We file- married filing jointly.

I am now working part-time (starting August of this year). My husband and I both only have 1 job, we are not self-employed, and he makes a great deal more than I do. When I filled out my W4 I know I was supposed to update his as well but I didn't. I really had no clue how to update his and when I used the IRS calculator it seemed like I (my W4) wouldn't need to withhold anything but he would need to update his W4 so we don't owe taxes at the end of the year.  

I was so overwhelmed that I ended up just doing additional withholding on my paycheck so that it will bring the cost down on what we owe and decided I would figure all of this out for January 1st, 2022.

What would be the best way for me to really find out how much I should be withholding on his W4 as well as mine? Or because I make substantially less than him- would only his W4 show the withholding? Also, would it perhaps be better to take this to a professional and they could help us figure out exactly how much we should be withholding so we don't owe a huge amount at the end of next year?

Thank you for your help!

[KochuK]

Hi Poppypinkish, thank you for joining TurboTax special forum today, and for your thorough explanation on the tax question - how not to have a substantial balance due when filing tax year 2021 tax returns.

I recommend that you set up a test ID using TurboTax Online 2020 program to project the 2021 tax outcome. You would need to annualize the Federal/state tax withholdings by viewing most recent pay stubs. By annualize, I mean how much taxes has been withheld up to date, how much taxes would be withheld at 12/31/2021 using the current W-4 with the payroll department. Then you would have a good idea what is the balance due when filing tax year 2021 tax returns.

If the shortfall is more than you like, you can:

1. revise the W-4s to have more tax withholding with current employers. If you are Married Filing Jointly, it does not matter which spouse to have more withholding. It is just a way to send tax money to IRS to pay against the tax year 2021 tax liability;

2. and/or you can leave the W4s alone, and mail in estimated tax payments when cash flow permits. The 1040-ES vouchers are at the end of below link. Page 1 "General rule" is also helpful

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

3. and/or you can use IRS Direct Pay to make online estimated tax payment.

https://www.irs.gov/payments/direct-pay

Hope the above helps.