Not Enough Federal and State Taxes Deducted From Paycheck

[shawnMsrm]

The location where my daughter works (she is not self employed), they are going through a transition (e.g., new managers, owner, etc.).

In estimating her taxes for 2024, she may owe over $1,000 and providing an updated W4 to take out additional money for federal and state each paycheck has been challenging with all the changes.

I'm trying to determine if there is an option to pay the IRS and state (Ohio) money now as if it was being taken out of her paycheck.

Eventually the new W4 will be applied; however, by that time it may be too late to take smaller amounts each month to make up for the difference.

[DoninGA]

Federal estimated tax payments for 2024 can be made on this IRS website - https://www.irs.gov/payments

How to make Ohio estimated tax payments for 2024 can be found on this Ohio website - https://tax.ohio.gov/individual/resources/estimated-payments

[shawnMsrm]

DoninGA

Thank you.

If I understand correctly, my daughter can use Pay Now With Direct Pay and that amount will be applied towards her taxes as if the money was taken from her paycheck. Is that correct?

I'm assuming when taxes are to be completed, some document may be made available that she can use to note her normal paycheck withheld amount and amount through Pay Now With Direct Pay. Correct?

[VolvoGirl]

Yes.  She will make a quarterly estimated payment.  Anyone can at anytime.  She will need to enter the payment into her tax return.  She won't get any document or paperwork (except maybe a receipt for the payment) for it so she needs to keep track of the date and amount.  Her only proof will be her credit card or bank account showing the payment.

Then to enter it next year......

To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to

Federal on left or at top (Personal for Home & Business)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Estimated - click the Start or Update button

[DoninGA · Accepted solution]

@shawnMsrm Correct.  The payments made using Direct Pay will be entered onto her tax account based on the Social Security number provided.

The federal income taxes withheld on her W-2 are reported on the federal tax return, Form 1040 Line 25a.  The estimated tax payments made will be entered on the Form 1040 Line 26.

[shawnMsrm]

DoninGA

Thank you very much.