Question

Estimating Federal Income Tax Withholding

Forum|Forum|2 years ago
October 25, 2023
2 replies
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I am in the process of retiring from the military (1 Jan 2024), establishing residency in TX, and starting a new civilian job (Nov 2023). Between Nov 2023 and December 2023, I will have two income streams (civilian employer & military pay) plus my spouse's full-time salary. Thus, for CY23, how do we calculate how much Federal Income Tax Withholding (FITW) to ensure against under paying?

Commencing 1 Jan 2024, I will have military retirement pay, civilian employer pay, and my spouse's full time-time salary. Thus, I have the same question as above.

Ask the Experts - Extension - Sept 2023

TeriH

TurboTax has a great free withholding calculator. It will walk you through the different payment streams you have and determine the best solution. My note of caution, would be to redo it for CY23 has it will be full year data, and at this point you are just truing up the last two months.

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L

lramkumar

Hello Don Day!

You can calculate and estimate amounts within your Turbo tax. You will go into your Turbo tax 2022>goto Other Tax situations> Estimated taxes>

You can add all the different streams of income and deductions that you will have and estimate the taxes for 2023.

You can do the same for your state as well. Texas does not have state income tax, So you will estimate for the state that you are currently claiming residency.

Thank you

Lakshmi