W-4 Income Tax Withholding Calculator 2019 - 2020
Tax season is ramping up, are you ramping up for a great big refund? Or are you stressing out over what you think may be a great big tax bill?
Fact is, if you are dancing on the clouds with the knowledge and anticipation of some giant tax refund, well, you just gave Uncle Same an interest free loan.
Gee, maybe you can do that for me too, please, I really would appreciate it, really really appreciate it!!!
All kidding aside, the habit of paying in too much and receiving a big refund is really not that bad of an idea for those who have trouble saving from week to week. Fact is it is a great way to keep some cash out of your hands and let it accumulate for a rainy day fund.
That being said, I really don't have any business teasing anyone about interest free loans. If that's what helps you save, go for it, I'm in full support...
Using The IRS W-4 Withholding Calculator
This employee paycheck withholding calculation tool is supplied by the IRS for free use to anyone wishing to use it.
The process is really quite simple to calculate and determine if you need to prepare a new Form W-4 to submit to your employer so that the correct amount of your income can be withheld from each paycheck in order to pay your federal income liability.
All taxpayers should consider preparing a new Form W-4 each year if their personal or financial circumstances have changed. In this case, it's highly likely that the amount of taxes you pay will have changed too.
Basic instructions: Follow the guided application process in the calculator above to determine if you should adjust your withholding allowances based on your itemized deductions, adjustments to your income, multiple household earners or jobs, or certain tax credit situations.
For employee wages, withholding must be based on allowances you claim, and can not be a percentage or flat amount of your wages. Most employers allow allowance changes anytime of year.
Once you have completed the process above, you can submit a new W-4 Withholding Form to your employer for any changes to take place in your employee withholding for future paychecks.