2020 taxes & withholding

[random]

My withholding was a bit low last year, so I decided to make some changes. While doing so I discovered that the W4 has changed quite a bit. So I really dug in.

It looks like my actual tax liability will be lower, but the new withholding tables would totally screw me if I use them, leaving me with only about 65% withheld by end of year. That's a pretty big check to cut in 2021.

Thought I would share the info so others could prepare as well.

 

[MacEntyre]

Why not pay quarterly to adjust, in addition to withholding what the tables suggest?

Otherwise, you are giving an interest free loan to the gubmint.

 

[random]

Why not pay quarterly to adjust, in addition to withholding what the tables suggest?

Otherwise, you are giving an interest free loan to the gubmint.

Also an option, if you're aware things have changed. Not something I've ever done before so I'd have to check on how.

 

[wvsig]

Why not pay quarterly to adjust, in addition to withholding what the tables suggest?

Otherwise, you are giving an interest free loan to the gubmint.

Even better is to take the money and put it into a high yield savings account at 2% and make deposits to it every paycheck to make up the difference from the withholding. That way you are at least making money on the money you earned before you turn it over to the Govt.