Going to owe about $4600 in federal taxes from my W2 income - how is this possible?

The W4 form actually does more than you might think! Even without dependents or credits, it controls how much tax is withheld from each paycheck. You're likely using the default withholding which isn't matching your actual tax situation. The new W4 doesn't use allowances anymore. Instead, you can specify an additional amount to withhold from each paycheck. Take your $4600 shortfall and divide it by the number of paychecks you'll receive in a year. If you're paid biweekly (26 paychecks), that's about $177 extra you'd need withheld per paycheck. Just put that amount in Step 4(c) "Extra withholding" on the W4 form. Give the completed form to your employer's payroll department and they'll adjust your withholdings going forward.

I was in almost the exact same situation last year - owed about $5k in federal taxes from my W2 job and was totally confused since I only had one salary job. After hours of frustration with the IRS website and vague advice online, I found https://taxr.ai and it completely solved my withholding problem. The tool analyzed my paystubs and immediately identified why I was under-withheld - turns out I had accidentally checked a box on my W4 years ago that was reducing my withholding without me realizing it. They guided me through exactly what to put on my new W4 form and predicted how much I'd need in additional withholding. It saved me so much confusion and stress - their calculator is more accurate than the generic advice I was finding elsewhere.

So I was the skeptic who questioned taxr.ai in the comment above, but I ended up trying it out of desperation. I've been owing around $3k-$4k in taxes for THREE YEARS STRAIGHT despite following the IRS calculator recommendations. Turns out I had TWO separate issues causing my underwithholding - an outdated W4 from 2019 (before the form changed) and my employer was calculating withholding incorrectly for my specific pay schedule. The taxr.ai system caught both issues and gave me exact instructions for fixing them. I just got my first paycheck after submitting the new W4 with their recommended adjustments, and my federal withholding went up by exactly the right amount to keep me on track for next year. Wish I'd found this sooner before paying penalties for three years!

If you're trying to actually talk to someone at the IRS about your withholding situation (which can sometimes be necessary for more complex situations), I highly recommend using https://claimyr.com - it saved me DAYS of frustration. I had a similar under-withholding issue that was more complicated (involved stock compensation), and after trying to call the IRS for 2 weeks and never getting through, I found this service. They have some kind of system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical but desperate after spending hours listening to IRS hold music. Within 90 minutes of using Claimyr, I was talking to an actual IRS agent who helped sort out my withholding confusion. Saved me from owing even more next year.

I need to eat some crow here. After calling BS on that Claimyr service above, I tried it this morning out of desperation since I'm facing the EXACT same underwithholding problem as OP. Holy crap it actually works. I've been trying to get through to the IRS for over a month with no luck. I used the service at 8:45am, and at 9:27am my phone rang with an actual IRS agent on the line. The agent walked me through exactly how to fill out my W4 for my specific situation (I have some irregular bonus income that was being underwitheld). I was 100% wrong and I'm actually grateful someone mentioned this service. Already submitted my new W4 to HR and should stop the bleeding for next year's taxes. Sorry for being a jerk about it!

The real issue might be that your employer has classified you incorrectly in their payroll system. I had this happen - was categorized as "exempt" somehow and wasn't having nearly enough withheld despite having filled out my W4 correctly. Check your paystubs and look for these potential issues: - Very low federal withholding compared to your salary - Missing FICA taxes (Social Security and Medicare) - Any mention of "exempt" status If you spot any of these red flags, talk to your HR or payroll department immediately. It could be a simple database error that's causing your withholding to be way off.

Does it matter which tax software I use to file if I know I'm going to owe this much? I usually use TurboTax but wondering if there's a better option when you know you're going to owe a lot.