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January 23, 2023
Question

Owe 3,300, was tipped, company doesn’t withhold FITW. What should I do.

  • January 23, 2023
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1 reply

January 23, 2023

Yes you are likely to owe taxes, if you company doesn't withhold any federal tax from your pay. 

 

First thing, be sure to file by April 18 (or request an extension), even if you owe taxes. If you can't pay by the deadline, you can request an installment agreement when you file. Click here to learn more about that. 

 

Filing an extension doesn't give you extra time to pay, only extra time to file your tax return. You will need to pay in full, or request an installment plan by April 18. 

 

If you are paid wages and receive a Form W-2, you can file a new Form W-4 with your employer and get some federal taxes taken out of your pay. Click here to learn more. 

 

If you are working as a contractor and receive a 1099, you will need to make quarterly payments to pay your taxes for 2023. This can be done in TurboTax:

 

  1. With your tax return open, select Federal on the left side menu.
  2. Click on Other Tax Situations.
  3. Expand Other Tax Forms and find Form W-4 and Estimated Taxes, click Start or Revisit to the right.
  4. Answer No to the question Do you want to change your W-4 withholdings for 2022?
  5. Select Review Now on the next screen.
  6. Answer the questions about your 2023 filing status, expected income, and deductions.
  7. On the screen titled, Which Method? Select one of the 2023 options, not the first option.
  8. When you come to the Print Vouchers? screen, answer Yes and the program will include your 2023 1040-ES payment vouchers when you print a copy of your return later.
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