I needed to increase my withholding this year but when I went to my employer’s online W4 form, I was surprised to see the format changed. Before I changed the number of people I was claiming and with holding was based on those numbers. Now it’s asking for actual dollar amounts based on calculations. I entered the amounts based on our situation but when my latest paycheck came through, less money is being taken out. I need more taken out. How do I know I’m having enough money withheld? I don’t want to get stuck with a huge tax bill next spring. Is there somewhere I can go to get an estimate of how much tax I should be paying/withholding ? Thanks!
The first thing you should do is use a tax estimator, here is a good one to use: https://turbotax.intuit.com/tax-tools/calculators/w4/ You can also read all about how to estimate your withholding here: https://turbotax.intuit.com/tax-tips/irs-tax-forms/how-to-estimate-federal-withholding/L99CO0yTK . Once you have used these links, contact them to submit a new W-4 to them. If you do not do it this way you will probably have a large tax bill to pay with your tax return and can even incur penalties and interest so please be careful with your withholding.
Yes, there sure is a way to estimate how much additional you may need to be withholding. You can use the TurboTax W-4 calculator here. You will need your most recent paystub(s) and the date of your last paystub. The calculator lets you play with different amounts of additional withholding per pay period and estimates how it will affect your final return. If you find you are going to need additional withholding, you can submit a new W4 form. Be sure to list additional withholding per pay period on Line 4c of the W4 form.