I retired from the Federal Government last year. I immediately took a job with a University to teach. I received an annuity payments from the Federal Gov and I collected a salary from the University. Our only son, just graduated from college and is now married. With my retirement and taking on a new job (plus I collected one month's salary from my old job), I was hit pretty hard with taxes for 2021.
How do I determined the proper number of exemptions to take out on my W-4?
Thank you!
Hi C-M-B!
Congrats on retiring but not becoming idle by sitting at home!!!
I see a lot of moving parts in your future. There are some clarifing questions that would be in order When in doubt, gathering all of the information concerning income received for the year, taxes paid for the year, any other taxable income which could include the sale of stocks and even Cryptocurrency converted into income and have a look at this website: Tax Estimator
Good luck to you
Hello
Since you are drawing an amount from retirement and are now employed at a new job you should use the job to submit your W-4 and compute taxes based on that amount. You should use your marginal tax rate to withhold taxes from your retirement since you are now employed at a new job. Exemptions are not used on the new W-4.