W-4 Tax Withholding Calculator
2018 - 2019
As every new year rolls in, the tax man rolls us over looking for more of our cash to support his uncontrollable deficit spending habits.
Lord knows we never seem to make any progress on our deficit reduction promises, and that weighs heavy on taxpayers pocket books.
Being unprepared to meet those financial obligations can be a glutton of stress when Uncle Sam comes calling.
Fortunately, we do have an option that can help us be properly prepared without dispersing any energy at all.
Your income tax paycheck withholding is determined by your W-4 form entries that you supply to your employer. These entries help determine how much is being withheld from your paycheck for income tax purposes. Getting this amount right will inevitably help you come out even with the IRS at year end, instead of scrambling to make up any shortfall in income tax payments.
IRS W-4 Employee Withholding Calculator
How to Adjust Your Employee W-4 Withholding
Adjusting your W-4 income tax withholding can be done on paper or electronically. Or the old-fashioned way with worksheets on a W-4 form.
The easy way these days is to use a free online w-4 calculator like the one above supplied by the IRS. Another simple choice is to use the TurboTax W-4 Withholding Calculator. This easy to use tool helps you determine your allowances quickly and easy. By answering a few simple questions, your IRS W-4 Employee Paycheck Withholding amount is computed for you.
Once you've completed this calculation and determined whether you would like to make an adjustment to your withholding, you can submit a new IRS W-4 Form to your employer so that any changes can take place for adjusting how much is withheld from each paycheck.
Reasons To Re-Submit A W-4 Withholding Form
Changes in your life dictate changes in the amount of taxes you are required to pay. For this reason, you should revise your W-4 Withholding.
Some life changes result in more taxes, while others entitle you tax deductions, benefits, and credits that can lower your taxes.
Second job: Any time your income goes up, or down, your tax liability will likely change. Getting a second job is the most common reason for needing to adjust a taxpayers W-4 withholding.
A spouse gets a job, or changes jobs: Any change in household income can require a change in the amount of withholding. The could put joint tax filers in a different tax bracket and require W-4 modifications.
Your getting married, or divorced: Married filing jointly qualifies you for a lower tax rate and other deductions. Getting a divorce will move you back to single tax status and withdraw some tax benefits.
Having a baby, or adopting: A new baby allows you to claim an additional allowance for a dependent. You may also qualify for the Child Tax Credit, Child Care Tax Credit, Adoption Tax Credit, and others.
Employed part time: Getting laid off, getting rehired, working a side job, working for yourself, any income change may require a w-4 adjustment.