How Can I Calculate the Correct Withholdings For MY Paycheck?

How Can I Calculate the Correct Withholdings For My Paycheck?

The IRS has just released a new fully updated online program Tax Withholding Calculator at https://www.irs.gov/individuals/tax-withholding-estimator

You may be surprised to learn that it is both easy to use, and accurate in predicting withholding amounts.

If you had a “surprise” bottom line when you submitted your last year’s tax returns, you can change that and protect yourself for the future.

Of you find you are currently having too much or too little withheld from your wages for taxes, you can change the amount right now, to make the year-end number come out “right.”

The form used for making the change is called a W-4. You can find a copy of the Form W-4 and Instructions here. It takes about 2 minutes to fill out.

If your state has an income tax, you will also want to complete the state version of the form.

Submit these forms at your payroll office or your HR office. Normally the change will take effect as of your very next paycheck.

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