Tax bracket

Forum|Forum|1 year ago
March 26, 2025
3 replies
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Trying to understand how to allow enough taxes to be withheld from my checks. If total of gross income from all annuities places you in 12 % bracket, then do you multiply that by the gross amounts of income and divide by 12 if you only get paid once a month?
if you are having to owe the that amount is what needs to be taken out as a additional on the W4P?

Ask the Experts - Education - Mar 2025

Best answer by ThomasM125

So which one should I do?

review the IRS estimator like you posted or do the simple method like I was told?

Thanks

If your income for 2025 is similar to 2024, you could leave everything the way it is and take your tax short-fall for 2024 and divide that by twelve and simply have that much additional tax withheld from one or more of your monthly checks.

DawnC

Employee

No, you should use the IRS withholding estimator, found here. Answer the questions, and the estimator will tell you what you should enter on W-4P.

Tax Withholding Estimator

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Bosn1Author

What if someone found out they owed let’s just say under 10000 and after reviewing they identified very little to know taxes were being taken out so to get ahead, take there gross and multiply by tax bracket amount then divide by either 24 or 12 to see what is the amount to add to their W4 or W4P to get back on the track for year 2025 taxes?

Vanessa A

Why are little to no taxes being taken out? Do you have multiple jobs? Are you making less than the standard deduction?

Yes, you can have an amount divided by the number of pay periods you have as an additional amount for 2025, but this will not help for 2024.

In the meantime, if you are unable to pay your taxes in full, you should still file by April 15th, but you can apply for a payment plan from the IRS. When you get to the end of TurboTax, prior to hitting file, it will also give you the option to apply.

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Bosn1Author

Not enough has been taken out from several kids and no taxes were taken out for SSA.

yes made more than standard deduction for last year.

will pay lump sum to IRS for what is owed for 2024 but the initial question was how to combat the current situation right now. I know I will have to update my W4P to add a additional amount that and was told by a tax rep that that would be the easiest way to do it and quickest way of knowing what needs to be taken out each month. Then at end of next year review w4p to see if over estimate or possible decrease the amount . Don’t want to owe!

DianeW777

As indicated by @ThomasM125 the simple method is take the amount you owe for 2024, divide it by the number of payment months left in 2025 and enter that amount as an additional withholding amount on your W-4P for 2025, Step 4(c).