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I am married filing joint. My husband and I both work. My yearly salary increased by $30k, how do I make sure I'm taking enough out to ensure I don't have to pay taxes next year?
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I know the W-4 is confusing. You can submit another W-4 after you see what the correct amount is you want taken out. Use the calculator I provided below.
If you still need more taken out then -
Simply add an additional amount on Line 4(c) for "extra withholding." That will increase your income tax withholding, reduce the amount of your paycheck and either jack up your refund or reduce any amount of tax you owe when you file your tax return.
W-4 instructions -
By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.
If you have 2 or more jobs -
When filling out your W-4 forms, there are a few tips to keep in mind: For the job where you make the most money, claim all of the allowances you normally would on the W-4 form. For any other job that you have (your second job for example) claim zero.
If you want to owe the least amount when filing your taxes, you will claim 0 on the W-4, so the job will withhold at a higher rate. This is important especially if you have more than 1 job.
If you didn't account for each job across your W-4s, you may not have withheld enough, so your tax refund could be less than expected.
Calculator - https://apps.irs.gov/app/tax-withholding-estimator
Instructions - https://www.irs.gov/pub/irs-pdf/fw4.pdf
Very good question! To ensure enough withholdings is take from each paycheck for both the W4 forms at both employers will need to be updated. I will also include links to W4 calculator and TaxCaster so you can see how your tax situation will look like.
How to Estimate Federal Withholding
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