Paid so much last year!

Forum|Forum|3 years ago
May 24, 2023
4 replies
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We had a large tax payment for 2022 and we would like to avoid that next. I used the IRS W4 help site to determine how to fill out the w4, but it still seems like we'll owe a lot for 2023 if not changed.

Ask the Experts - W-4 - May 2023

C

conniem123

Hi Emoh,

Hope you are having a great day!

It is not fun having a large balance due when filing your tax return. Based on your 2022 tax situation it does sound like updating and submitting a Form W-4 to your employer is a good idea.

If the W-4 calculator still reflects amount due, you can have Extra withholding. Estimated the amount of tax still due when filing your 2023 tax return, divide that by the remaining pay periods in 2023, and enter on Form W-4 Step 4(c).

TurboTax also has a Form W-4 tool, https://turbotax.intuit.com/tax-tools/calculators/w4/

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 you find this information helpful!

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carmen_t

Hello,

Good question for tax planning to avoid the same situation as prior year. You are correct if w4 is not corrected or updated you will face the same situation for 2023. I am also going to include a refund calculator so you can estimate as well if you would like to do prepayments to ensure enough is withheld by the end of the year.

Links mentioned below:

TaxCaster

How to Estimate Federal Withholding

ebastian1

Owing a lot when you file your tax return can be very frustrating! The good news is that there are tools to help you figure out the correct withholding!

My favorite is the TurboTax W-4 Calculator 2023

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

When you have time to sit down and work on this, grab your most recent paystubs from any/all jobs you've worked this year, and go through the questions in one of these tools. At the end of the process, you'll be able to see an estimate of what you're on track for this year, and then you can also use the tool to figure out how to adjust the W-4 to get you to the correct withholding.

I would suggest also reviewing the tool at the end of 2023 to ensure that your withholding will still be accurate for the 2024 tax year!

I hope this helps!

Have a great day!