#Advice
To help you accurately fill out your W-4 given your unique financial situation, let’s break down the information you've provided and clarify how to proceed based on the IRS and TurboTax recommendations.
### Overview of Your Income Sources
1. **Self-Employment**: $2,070
2. **Unemployment**: Gross $16,146; Net $13,728 (after taxes)
3. **First Job**:
Employment Period: 1/1/24 – 2/20/24
Gross Income YTD (excluding severance): $8,497
Gross Severance YTD: $4,753.84
Taxes YTD: $2,579 ($1,007 federal)
Last Paycheck: 3/15/2024
4. **Second Job**:
Employment Period: 10/24/24 – Present
Pay Rate: $36/hour
Average Income per paycheck: $2,890 Gross, $2,210 Net
### W-4 Recommendations Breakdown
Based on the information provided and the conflicting recommendations from the IRS Calculator and TurboTax:
- **IRS Recommendation**:
Line 3 (Dependents): $1,307
Line 4A (Other Income): $17,685
- **TurboTax Recommendation**:
Line 4A (Other Income): $16,146
Line 4B (Extra Withholding): $425
### Steps to Fill Out Your W-4
1. **Personal Information**:
- Fill out your name, address, and Social Security number.
2. **Filing Status**:
- Check the box for “Single.”
3. **Step 2 – Multiple Jobs or Spouse Works**:
Since you have two jobs and self-employment income, you should complete this section.
You can use the IRS estimator or check the box indicating that you have multiple jobs.
4. **Step 3 – Claim Dependents**:
- If you do not have any dependents or children, leave this section blank.
5. **Step 4 – Other Adjustments**:
**Line 4A (Other Income)**: You should report your total other income here. Given your self-employment income and unemployment benefits, you can choose to use either the IRS recommendation ($17,685) or TurboTax's ($16,146). If you feel uncertain about the exact amount due to fluctuations in income, consider using a conservative estimate.
**Line 4B (Extra Withholding)**: If you want to ensure enough tax is withheld to cover your tax liability due to your various income sources, you might want to add an extra withholding amount here. TurboTax suggests $425; consider entering this if you're concerned about under-withholding.
6. **Step 5 – Sign and Date**:
- Sign and date the form before submitting it to your employer.
### Additional Considerations
- **Review Your Pay Stubs**: After a few pay periods with the new W-4 in place, review your pay stubs to ensure that enough tax is being withheld based on your overall income.
- **Adjust as Necessary**: If you find that too much or too little tax is being withheld after a few months, you can adjust your W-4 again.
- **Consult a Tax Professional**: Given the complexities of your situation with multiple income sources and potential fluctuations in earnings, consulting a tax professional may provide personalized guidance tailored to your specific needs.
By following these steps and considering the recommendations from both calculators while factoring in your unique financial situation, you should be able to fill out your W-4 accurately.
Citations:
[1] https://uimn.org/applicants/affectsbenefits/self-employment/index.jsp
[2] https://smartasset.com/taxes/income-taxes
[3] https://turbotax.intuit.com/tax-tools/calculators/tax-bracket/
[4] https://turbotax.intuit.com/tax-tips/unemployment/guide-to-unemployment-and-taxes/L1uajNdHD
[5] https://www.nerdwallet.com/calculator/tax-calculator