W-4 form updates

[tedneher]

Hi. I have typically for the previous six years owed about $3000 Fed and got a State Refund of about $2000. Last year I got a pretty sizable bonus and I owed Fed $7000 and State $2000. I would like to avoid owing that much at tax time, but there is no simple way (like the good old days) to tell them to withhold an additional $200 / check or something similar...and the W-4 is way different than it used to be. Is there an easy solution to just withhold additional money, or do I have to start doing all the calculations...

[conniem123]

Hi tedneher,  Yes it can be tricky finding that sweet spot of withholdings to not owe tax and not receive too large of a refund!  The new Form W-4 is different, but there is a W-4 Calculator that will take you step-by-step  through the worksheet,

https://turbotax.intuit.com/tax-tools/calculators/w4/

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.  Always a good idea to compare your 2021 total tax on your tax return with your year-to-date federal withholdings on your most recent paystub.

You can also include an Additional Withholding in Step 4 (c) – Extra Withholdings – put an amount here to be withheld
each pay period.

I hope this is helpful!

[tedneher]

Thanks for confirming my fears! I was hoping not to have to go through the calculator AND keep an eye on my withholdings to make sure it was what I intended.