I live in California and will be earning enough to move into the 11.3% state bracket. I am married and take 1 allowance on the W4. My wife does not have income this year. We prefer to have a small refund for both state and federal. Knowing that I'm moving into the higher tax bracket, would you recommend that I make any changes to my w4?
Hi Anchor in the lee, It can be tricky to find that sweet spot to have enough tax withheld so that you do not owe tax and do not receive too large a tax refund! It's always a good idea to review and submit a Form W-4 when you have increased income. Here is a W-4 Calculator that will take you step-by-step through the worksheet,
Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.
I hope this helps!
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