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March 18, 2021
Question

Estimated taxes for next year

  • March 18, 2021
  • 1 reply
  • 0 views

Hi,

My husband's income drastically increased due to a new job. It is a job that deducts fed and state taxes.  Turbo tax is stating I should pay estimated taxes for next year.  Do I need to do this if the increased income came from a wages that deduct taxes?  

1 reply

March 22, 2021

It depends.  You should check out the TurboTax W4 Calculator to ensure his withholding from work is sufficient to cover the higher tax liability.  Then you can either change the withholding each payday or make estimated payments.

 

TurboTax W4 Calculator