Employee Withholding Calculator
Claiming more allowances will take less money out of your paychecks, so you can spend or invest it as needed throughout the year. But it could also keep you from over-withholding, which means a smaller, or non-existent tax refund. You may even end up owing more income taxes at the end of the year.
The TurboTax withholding calculator can help you determine the right amount to be withheld.
Claiming fewer allowances will increase your withholding – reducing the amount of your paychecks, but increasing the chance you’ll get a bigger tax refund. For some taxpayers, this ia a way of saving money.
Getting your tax bill to come out even at the end of the year can seem like a balancing act but fortunately a simple tool can make that a simple process.
Using a paycheck withholding calculator is a good way to determine what you need to claim in exemptions to adjust how much money is withheld from each paycheck to pay your federal income taxes.
What this does is keep you from not paying enough in and subjecting yourself to penalty and interest charges for underpayment.
Or you may be getting a big refund at the end of the year from the interest free loan you gave Uncle Sam by paying too much in taxes through your withholding.
Fact is the closer to even at year end the better.
When you use the withholding calculator the purpose is to stay on target with your year end tax bill. Self employed tax payers can use it to determine their quarterly tax payment amounts. It's a great tool to keep you close to the proper tax payments.
Determine if you need to make adjustments to your exemptions and file a new form with your employer
Every tax season many tax filers baffled when they find out that they have either over withheld or under paid on their employee withholdings.
This is when they find out that they will end up owing a lot more in taxes, or be getting a larger than normal refund from giving Uncle Sam after granting him a interest free loan from over-payments.
Making an adjustment calculation each year gives you the opportunity to more closely match your liability with your withholdings.
Should I adjust my payroll withholding’s?
Use this IRS withholding calculator above to help you determine whether you are likely to need to make an adjustment in order to be on target and come out close to even at year end with Uncle Sam.
Calculations are based on your current payroll withholding status. If you don’t like the prediction you can make adjustments to your employer W-4 form then resubmit the new form to your employer to receive a paycheck withholding adjustment.
If the calculation predicts a overpayment, you may be able to make an adjustment that increases your take home pay. Now that would be nice right! Estimate those W-4 withholdings now and get things balanced out for the new year!
How to Adjust IRS Paycheck Tax Withholding
Tired of waiting for your tax refund to arrive and would rather pay less in to come out even at year end on your tax return? You can adjust your paycheck withholding in 2 easy steps:
- Use the free W-4 IRS Withholding Calculator above below to find out what your paycheck withholding allowances should be:
- Use the results to fill out a new W-4 Form with the adjusted number of allowances, then turn it into your employer. Simple as that!!!