What should my withholding be to not make a payment at tax time?

DATE_PUBLISHED

Determining the exact amount of withholdings you should be making in order to avoid any payment at tax time can be difficult to determine, so most people estimate what their expected liability will be. If the goal is simply to receive a refund, you may opt to overshoot your expected liability and get money back once the return is filed. In most cases however, this wouldn’t be suggested as you just end up giving the government an interest free loan.

The general rule of thumb in order to avoid an underpayment penalty, is to pay the lesser of 90% of the taxes you owe by the end of that year or an amount equal to 100% of your tax liability for the previous year.

Subscribe to Taxfyle Resources & Tax Tips

Get the latest posts delivered right to your inbox

Thank you for subscribing!
Oops! Something went wrong while submitting the form.
When To File As Married Filing Separately
Personal Taxes
If you’re preparing to file your taxes and want to know if you and your spouse should file separately, we’re here to help.
5 Minute Read
Eight Tax Tips To Maximize Your Tax Return
Personal Taxes
It’s time to file taxes and it’s important that you take advantage of everything possible to maximize your return.
5
Common Overlooked Tax Deductions You Need To Know
Personal Taxes
Filing a tax return is more enjoyable if you view taxes as a game. You need to maximize every deduction possible if you want to win!
6 Minute Read

File simpler.

File smarter.

File with Taxfyle.