The Form W-4 is much different than it used to be. IRS has tried to simplify this for single income taxpayers but many still expect the old way of using exemptions etc. It doesn’t work that way any more. For those of you who are single and one-earner households it is much easier to complete.If you use the worksheet here on W-4Free.com, the calculator completes the form for you in seconds or minutes. Just follow the prompts and click through the app. Once you are done you will have a PDF you can print or email to your payroll department. Your payroll department will use their payroll withholding tables to do the rest of the calculations for you.
Don’t fret too much about this. The new tax return takes away exemptions from the calculation.
You have been filing as a single individual all these years. Now you’re getting married. This is a big life step and a big tax change also. This could be a tax saver for you also as the tax brackets for married filing joint (MFJ) – are generally better than single or married and separate. But it means that you need to reassess yourwithholding and file a new W-4 with your employer. In fact, both you and your spouse do. Use the simple W-4Free.com calculator here and print new W-4s so that your withholding is correctly leveled for your expected income. A little time now could save you a lot of heartache and brain damage later. Be sure to consider that you might now be Itemizing deductions instead of using the standard deductions as you will be combining your data onto one tax return. W-4Free.com will help you with these calculations.
Most likely you changed jobs for higher pay. If so, your taxes will be higher also. If your new job pays more and moves you into a higher tax bracket, you'll naturally end up owing more come tax season. Now is the time to make sure you have enough withheld on each paycheck. Be sure to use W-4Free.com to complete a new W-4 to give to your employer. Do the math yourself to make sure your withholding by year-end will get you close to your tax liability. If your situation is complex and, or you have other sources of income check with your tax advisor.
If you didn’t get the refund you were hoping for, or are used to getting a much larger refund, now is the time to look at the withholding on your wages. If a big refund for is part of your financial plan you will need to increase tax withholding on your paycheck. Complete a new Form W-4 here and increase the amount of additional withholding on line 4c of form W-4.
It is likely there are a couple of reasons. The most common reason is that the IRS changed withholding methods a couple of years back and the W-4 form is substantially different. If you haven’t completed a new form W-4 and turned it into your payroll department they are still withholding based on the old method and old tax law. Use the tool here to complete a new Form W-4. Other reasons include pay changes which put you in a higher tax bracket, getting married, losing deductions, a side hustle, or capital gains on stock sales. Give consideration to all of these things as you evaluate your situation.
The IRS Form W-4 does not account for self-employment tax if you have a job and side income.
Generally, your side income or “side gig” is earned income subject to Self-employment tax. (SE tax) Yes, that is an additional tax. The rate for SE tax is 15.3% on that income. You may need to make estimated tax payments to cover this tax liability to avoid penalties and the related aggravation. That means you need to pay quarterly – during this year – as you earn the income. If you wait until your tax return is due, you will owe underestimated tax penalties. Don’t wait for this big ugly surprise. Contact your tax advisor now if you are in this situation for 2024. A good advisor can help you navigate these rules, make a plan and even reduce or,beat the additional SE tax. Don’t procrastinate.
The key is to accurately project and plan for your tax liability by year end. You can do this, or if your situation is complex ask for help from your tax advisor. The W-4 form here will help you to have the right amount of tax withheld on each paycheck so you don’t come up short on April 15 next year. If you are underpaid, eg don’t have enough withheld you could owe a big balance and be penalized to boot. Save yourself from that painful experience by planning now. Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year. There are two ways to pay tax:
You can also avoid interest or a penalty for paying too little tax during the year. Ordinarily, you can avoid this penalty by paying at least 90 percent of your tax during the year.
You need to fine-tune your W-4 and avoid writing a fat check next year. Use the tools here on W-4Free.com. Also, use an online calculator that will help you estimate your total tax liability. If you have a lot of tax complexity on your return, get help. Have your advisor create a tax plan for you. Make sure you are taking into consideration life changes like marriage and divorce, new homes, children, pay changes etc. The IRS has an online tax calculator you can use. There are other more simple, very efficient and free online tax calculators available. If you calculate your withholding strategically, you really could end up owing no federal tax payments come April. Watch your income carefully and adjust your W-4 if you need to. You can do it multiple times throughout the year, if needed. Just be sure that you don’t cut it so close that you end up owing underpayment penalties.
Tax brackets 2024 for taxes filed in 2025
| Tax Rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | $0 to $11,600. | $0 to $23,200. | $0 to $11,600. | $0 to $16,550. |
| 12% | $11,601 to $47,150. | $23,201 to $94,300. | $11,601 to $47,150. | $16,551 to $63,100. |
| 22% | $47,151 to $100,525. | $94,301 to $201,050. | $47,151 to $100,525. | $63,101 to $100,500. |
| 24% | $100,526 to $191,950. | $201,051 to $383,900. | $100,526 to $191,950. | $100,501 to $191,950. |
| 32% | $191,951 to $243,725. | $383,901 to $487,450. | $191,951 to $243,725. | $191,951 to $243,700. |
| 35% | $243,726 to $609,350. | $487,451 to $731,200. | $243,726 to $365,600. | $243,701 to $609,350. |