For Tax Years 2020 and 2021, Sheila (53) was able to use the head of household filing status while she had temporary custody of her granddaughter, Mia. In February 2022, Mia moved back in with her biological parents. In 2022, Sheila will file single, with no dependents. Although Sheila received a refund for 2021, she is concerned that she will owe a large balance due on her 2022 return, since her situation has changed. As Sheila's tax preparer, what advice would you offer? Suggest she complete Form W-4 so her employer can withhold the correct amount of income tax from her pay for the remainder of the year. Suggest she update the Form W-4 she filed with her employer to increase the number of withholding allowances. Complete Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts. Wait until next year to see whether she actually has a balance due, then make any necessary adjustments. Completir submitting employer taxpayer a large balan 2022 retur results, the use the IR Withholdin determine.

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As Sheilas tax preparer I would advise her to take the following steps 1 Update Form W4 Since Sheila... View the full answer