Calculate Employee Federal Withholding
Employees can use this Withholdings Calculator to help them determine whether they should give their employer a new Form W-4, Employee's Withholding Allowance Certificate to correct having too much or too little federal income taxes withheld from their paycheck.
With the results from the calculator below you can fill out a new W-4, Employee's Withholding Allowance Certificate form to submit to your employer and change the amount of Earnings being withheld from your pay.
Making adjustments to your withholding will help you simplify your online tax return filing by keeping you close to even financially at year end with the IRS. That certainly is better than finding out you have a big end of year tax bill, isn't it? I thought so!
Calculate Federal Tax Withheld From Paycheck
Your 2018 tax return being filed by April 15 2019 offers the opportunity for a refund. This refund amount is largely determined by the amount of taxes you already paid through your employee withholding.
You can adjust your year end refund by changing the number of exemptions you claim on your employee W-4.
When you calculate your federal income taxes the purpose is to stay on target with your year end IRS tax obligation. To accomplish this, you need to know how many exemptions to claim with your employer for paycheck withholding.
Calculate Federal Tax Withholding 2018 - 2019
The IRS offers a simple to use Withholding Calculator to help you calculate paycheck income tax withholding. This calculator below is supplied by the IRS as a simple tool to help you make adjustments to your withholding in order to predict what the outcome will be when you calculate federal tax refund year end totals.
Ideally, it's wise to plan your withholding and other tax tactics so that you either get a minimal refund or owe just a bit more in taxes when you file your return. A big zero on the taxes due or refund line is a tough goal to meet but it's a laudable goal verses filing a federal tax extension to buy more time if you can't afford to pay a big surprise tax bill you weren't expecting.
The IRS make an effort to encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” It is now even more important following recent changes including the Tax Cuts and Jobs Act tax law changes for 2018 on.
How To Calculate Federal Tax Withheld
Shoot for Zero with our Personal Tax Guidance Tips
Owe nothing and get nothing back, that's the perfect scenario. While it can be nice to receive a big tax refund, you have to remember that the IRS just got an interest free loan from you if they owe you money. it's not the smartest financial strategy to get a big refund, it's just another way of saying you finally got your money back on the interest-free loan you gave to Uncle Sam.
On the other hand, owing a gigantic tax bill when it's time to pick your tax software and file your return isn't such a smart position to be in either, especially if you will be struggling to pay your tax bill. For myself, I find it a lot smarter to get what I owe out of my hands as soon as possible. This keeps me more within my budget for everyday spending since I have less in my bank account and know what I can and can't spend to keep my head above water.
Use it to make allowance adjustments that will correct overpayment or underpayment withholdings so your refund is where you want it to be.
IRS Federal Income Tax Withholding Calculator
How To Calculate Federal Tax Withheld From Paycheck to Adjust Your Paycheck Withholding and Come Out Even At Year End
Instructions on Publication 505 for Adjusting Your Tax Withholding can help you calculate more accurate withholding exemptions if any of the following apply to you.
- You're subjected to the alternative minimum tax
- You're subjected to self-employment tax, or other taxes
- Your current job or jobs will end prior to year end
Have the following information handy to use the withholdings calculator
- Your most recent employee paycheck stubs
- Your most recent federal income tax return
Estimating income can get you a ballpark figure but remember that any results will only be accurate to the extent of what you put in.