02 May Determining if your boss is withholding too much or too little
The recent changes to the U.S. tax code may have impacted how much you will need to pay the Federal Government in taxes.
To help you figure out the correct number of exemptions for you to use, the IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.”
The Calculator will help you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.
Because no one likes to be surprised come April.
The Calculator will check to see if you are having too much or too little withheld from your paycheck and even takes into account additional income from other sources.
If you have too little taken out, you’ll owe at the end of the year.
At the same time, with the average refund topping $2,800, you may prefer to have less tax withheld up front and receive more in your paycheck.
If you are an employee, the Withholding Calculator helps you determine whether you need to fill out a new Form W-4, Employee’s Withholding Allowance Certificate.
You can use your results from the Calculator to help fill out the form and adjust your income tax withholding.
What you’ll need
The Calculator will ask you to estimate values of your 2018 income, the number of children you will claim for the Child Tax Credit and Earned Income Tax Credit, and other items that will affect your 2018 taxes.
Most of the information can be found on your most recent pay stub. If you don’t have one handy, your most recent income tax return will work.
Keep in mind that the Calculator’s results will only be as accurate as the information you provide. If your circumstances change during the year, come back to this Calculator to make sure that your withholding is still correct.
The Withholding Calculator does not ask you to provide sensitive personally-identifiable information like your name, Social Security number, address or bank account numbers. The IRS does not save or record the information you enter on the Calculator.
Ready to start?
If you have questions regarding your tax picture, contact Dempsey Vantrease & Follis today.