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Level 1
posted May 29, 2024 9:13:06 AM

Update W4

How do I calculate what needs to be correctly deducted to update my W4 and DE-4?  It's not as simple as choosing Married-1 anymore. 

0 4 1460
4 Replies
Employee Tax Expert
May 29, 2024 9:26:10 AM

The best way to calculate your W-4 and DE-4 withholding requirements is to use our withholding estimator tool. 

Once you fill in the information you will be guided to which elections to make.

 

Hope this helps!

Cindy

Level 1
May 29, 2024 9:30:29 AM

When using the calculator tool, it shows a negative amount in the 2025 estimated payment - does this mean that is how much I will owe next year?  

 

Do I change the "your paycheck impact" to adjust the extra tax to withhold per pay period?  Meaning they will continue to take out the same as what they are currently taking out PLUS this amount?  Or will the amount taken out be only this new amount?  

Employee Tax Expert
May 29, 2024 9:34:35 AM

To correctly calculate (changes happen so this is always an estimate) your W4 and De-4 you will need to:

  • Have an estimate of the amount of income you will earn in 2024
  • Know how many dependents you will claim
  • Know your filing status
  • Taxpayer and spouse age
  • If taxpayer or spouse are blind
  • Other adjustments/credit that may affect your liability

These all go into the calculation for withholdings. You will want to claim one deduction for each person you are claiming. The easiest way to do this is with TurboTax's W-4 Withholding calculator https://turbotax.intuit.com/tax-tools/calculators/w4/

The D-4 is much the same. If you look at the instructions it will have step by step calculation to get the most accurate number. It also has a tax worksheet that can help you determine your liability for the year. https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de4.pdf

Employee Tax Expert
May 29, 2024 9:35:13 AM

Yes, that will be the amount you owe, and any amount entered in step 4(c) will be an extra amount they will withhold in addition to what you are having withheld already.