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Monkey62
Level 1

W4 completed incorrectly and how much additional taxes should I have withheld?

I don't think I completed the W4 correctly for new part-time job.  I'm married filing jointly and both of us are working.  Just started a part-time job with an estimated gross pay of $39,600 for remaining 2022.  My total income for 2022 from other sources is $309,402 (excluding income from new part-time job).   I noticed my first paystub only had $2.48 withheld for federal taxes...obviously this is incorrect and it needs to be greater.  My spouse's estimated income for this year will be $280K-$290K.   In order to not get killed on having to pay additional fed taxes at year's end.  How much more should I have withheld from current part-time job?  10% of gross per paycheck?  I get paid semi-monthly.

Thank you.

 

1 Best answer

Accepted Solutions
conniem123
Employee Tax Expert

W4 completed incorrectly and how much additional taxes should I have withheld?

Hi Monkey62,  It can be tricky finding that sweet spot of tax withheld to not owe taxes and not receive too large a tax refund!  There is a W-4 Calculator that takes you step-by-step through the worksheet,

 

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

 

Keep in mind that when you file your tax return, your tax is calculated on your total taxable income from all sources.  The new Form W-4 takes into consideration that married filing joint returns have more than one income, which may result in income reaching a higher tax bracket.  Tax rates increase as income rises, and only one standard deduction can be claimed on each tax return, regardless of the number of jobs. Therefore, since you have more than one job at a time and are married filing jointly and you both work, more money should usually be withheld from the combined pay for all the jobs than would be withheld if each job was considered by itself.  

 

Here is an IRS resource for the new Form W-4 also,

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

 

It's always a great idea to compare your 2021 total tax on your 2021 tax return to your year-to-date federal tax withheld on the most recent paycheck for each job you and your wife hold.

 

I hope this is helpful!

 

 

 

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3 Replies
conniem123
Employee Tax Expert

W4 completed incorrectly and how much additional taxes should I have withheld?

Hi Monkey62,  It can be tricky finding that sweet spot of tax withheld to not owe taxes and not receive too large a tax refund!  There is a W-4 Calculator that takes you step-by-step through the worksheet,

 

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

 

Keep in mind that when you file your tax return, your tax is calculated on your total taxable income from all sources.  The new Form W-4 takes into consideration that married filing joint returns have more than one income, which may result in income reaching a higher tax bracket.  Tax rates increase as income rises, and only one standard deduction can be claimed on each tax return, regardless of the number of jobs. Therefore, since you have more than one job at a time and are married filing jointly and you both work, more money should usually be withheld from the combined pay for all the jobs than would be withheld if each job was considered by itself.  

 

Here is an IRS resource for the new Form W-4 also,

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

 

It's always a great idea to compare your 2021 total tax on your 2021 tax return to your year-to-date federal tax withheld on the most recent paycheck for each job you and your wife hold.

 

I hope this is helpful!

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Monkey62
Level 1

W4 completed incorrectly and how much additional taxes should I have withheld?

Thank you conniem123.   I'll use the calculator and hopefully it will help me determine how much more I need have withheld on the part-time.  Going forward the part-time job will be my only source of income for the rest of the year.  We're not looking to get a refund back as much as wanting to make sure we don't end up owing a butt load.  Goal is to get zero back, right?   Neither owe or get a refund. 

Critter-3
Level 15

W4 completed incorrectly and how much additional taxes should I have withheld?

Correct ... the W-4 calculator link in the other post is useful in getting this correct especially for a married couple where they both work.  Remember that each employer withholds like it is your only income for the both of you so adjustments need to be entered.  

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