I am part owner of a small privately held C-corp. We do dividends in June and December.
I start the year by setting my withholding only based on salary. Then I adjust my June-Dec withholdings to cover the Jun dividend tax. Then I adjust my last two Dec paychecks to cover the Dec dividend tax.
This year's Dec dividend is a monster, and even if I withhold my entire last two paychecks, they will fall well short of covering the tax. I could cover either state or federal but not both.
I feel I am screwed due to poor planning. Any suggestions on how to proceed? Thanks!
I start the year by setting my withholding only based on salary. Then I adjust my June-Dec withholdings to cover the Jun dividend tax. Then I adjust my last two Dec paychecks to cover the Dec dividend tax.
This year's Dec dividend is a monster, and even if I withhold my entire last two paychecks, they will fall well short of covering the tax. I could cover either state or federal but not both.
I feel I am screwed due to poor planning. Any suggestions on how to proceed? Thanks!