Updating W4

[Awk5295]

How do I update my W4 so I don't owe taxes?

[SwapnaM · Accepted solution]

To update your W-4 form and avoid owing taxes, follow these steps:

1. Get Your Current W-4: Obtain a copy of your current W-4 form from your employer or the IRS website.

2. Estimate Your Tax Liability: Use the IRS Tax Withholding Estimator to determine how much tax you should have withheld from your paycheck. https://www.irs.gov/individuals/tax-withholding-estimator       

    How to estimate Federal withholding: https://turbotax.intuit.com/tax-tips/irs-tax-forms/how-to-estimate-federal-withholding/L99CO0yTK 

3. Adjust Your Withholding:

   • Increase Withholding: If you owed taxes last year, you might need to increase the amount withheld from your paycheck. You can do this by specifying additional withholding on line 4(c) of the W-4 form.
   • Claim Fewer Allowances: Reduce the number of dependents you claim. You can choose to not claim some or all of your dependents here, even if you qualify for the credits. This will cause more tax to be withheld.
   • TIP: You can select Single or Married Filing Separately in Step 1 for your W4 and enter amounts in Step 4 for additional withholdings.

4. Account for Additional Income: If you have other sources of income (e.g., freelance work, investments), make sure to include these when estimating your tax liability.

5. Submit the Updated W-4: Once you've made the necessary adjustments, submit the updated W-4 form to your employer.

6. Monitor Your Paychecks: Check your pay stubs to ensure the correct amount is being withheld.

Please look at https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-4-form/L2NapDzX2 for more info about a W4.

@Awk5295 Thanks for the question!!