withholdings

[Beazer24]

My husband's job is commissioned based.  He is doing extremely well.  I have no idea on how to adjust his W4.  Currently he has a lot of taxes taken out but I am always afraid of owing at the end of the year.   How do I avoid paying too little taxes?  

[OmM1]

Hello Beazer24

Thank you for reaching out and sharing your concern. I do understand your concerns, as no one likes to get an unaticipated tax bill at the end of the year as it upsets whole budget and may also result in interest and penalty charges.

Assuming your husband gets commission from his employer via a paycheck, filling out W4 correctly is the best way to ensure that you would not owe taxes at the end of the year. Please do note that if you have other income then while filling out your W4 these need to be reported as well so that the employer can take our taxes appropriately. Hope the information hereunder helps you in adjusting your W4

HOW to adjust my Form W4?

The IRS replaced the old Form W4 with a new system beginning in 2020.

It’s easy to adjust your withholding.  You can do it on paper or electronically.  The old-fashioned way is to walk through the worksheets on the W-4 form.

An even easier way is to use the TurboTax W-4 Calculator.

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

[Beazer24]

I have tried the calculator.  Since his check changes every time, how do I know what to put in for taxable income per pay period? 

[OmM1]

Hi

You can put at estimate and revisit the estimator every quarter (or as and when you get better visibility).

Also if your husband is on W2, the employer knows the money your husband is making and they will deduct taxes appropriately, based on the information you provide to them on your W4 form.

You should not have to submit a revised W4 unless there are other changes in your family / income.