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Underpaid taxes this year. IRS says I need to pay my 2024 taxes in four estimated payments. can't I adjust my W-4 withholdings to cover the total when I file?

This is my first year of being retired. I dont know why my annuity was so undertaxed. i filled out the withholding to match my filing status
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2 Replies
MinhT1
Employee Tax Expert

Underpaid taxes this year. IRS says I need to pay my 2024 taxes in four estimated payments. can't I adjust my W-4 withholdings to cover the total when I file?

Yes. 

 

You can request that an extra amount be withheld from each paycheck by filling in an amount in Step 4 c) on your Form W-4.

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Underpaid taxes this year. IRS says I need to pay my 2024 taxes in four estimated payments. can't I adjust my W-4 withholdings to cover the total when I file?

For retirement income you need to fill out a new W4P.  You might be able to do  it online for your plan.

https://www.irs.gov/pub/irs-pdf/fw4p.pdf 

 

If you just retired in 2023 your job W2 and the 1099R combined increased your income.  Which made a higher overall tax.  The withholding on each was only enough to cover each individual tax.   Next year with just your 1099R it should work out.  Are you now also getting Social Security? SS can be taxable too.

 

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

 

 

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