Personal Finance (Not Investing) • Federal Taxes: confused by these numbers -- why do I owe so much?

Thanks! That would explain things!

(1) Your W2 income on its own is underwithheld. On $374k of income you should have withheld about $98k in taxes.

Can you tell why it was underwithheld -- is that a mistake by my employer?

My W4 says I'm single with no dependents and also requests an additional $100 be withheld (I am guessing that is per pay-period).

I don't remember the reason I requested the additional $100 be withheld -- maybe some HR person told me to do that on the first day?

If it was my mistake and the employer can "underwithold", how should I calculate what I should "additionally withhold" for ~$410k W2 income in 2024? Or, instead of using W2 income in estimating, maybe I should try to anticipate my "2024 total income" and use *that* to calculate the "additional withholding per paycheck?"

If some of the W2 income was bonus, withheld at lower supplemental rate, that might account for the underwithholding.

Yes, there is a bonus in my W2 income -- a lot of the bonus (paid in Jan 2023) was used to front-load my pre-tax 401k -- would that have caused something? I will go find out by looking at paychecks to figure out how much bonus was withheld.

Thanks again -- and hope I get it so I only "owe a little" in April 2025.

Statistics: Posted by health_concerns — Sun Apr 07, 2024 1:45 am — Replies 3 — Views 306

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