Congress and the IRS are constantly changing the tax code making it difficult to know your tax bracket, which is why there are income tax calculators available online for free.
Employees to ensure that they are not having too much or too little income tax withheld from their pay use an income tax calculator. It does not replace a W-4 form, but you will find it is less complicated and more accurate to use than the worksheets that go with Form W-4. You may use the calculated results he results help you complete a new Form W-4, which you can submit to your employer.
The following are tips to help you with your calculation: You will need most recent pay stubs and last year's income tax return. Complete all information that applies to your situation. Estimate values if needed, keep in mind that the results are only as accurate as the information you supply.
If you have a question there are links embedded in the program that you can consult. Print the last screen it will be a summary of the input and the results.After you print your results you can complete a new W-4 form if needed.
Who Can Benefit From This Application?
-- Employees who would want to modify their federal tax withholding to reduce their refund or their balance owed.
-- Employees whose situations are only estimated by the worksheets on form W-4 (e.g., couples in which both are employed; hose eligible to file as Head of Household, anybody with concurrent jobs, and those with children who qualify for the Child Tax Credit).
-- Employees with non-wage revenue in excess of their deductions and adjustments who would like to have tax on that income deducted from their paychecks instead of making periodic payments through the estimated tax procedures.
For a special situation there is Publication 919, How Do I Adjust My Tax Withholding? If your situation is listed below you will achieve a more accurate withholding with this publication.
You will be subject to alternative minimum tax, self-employment tax, or other taxes; or if one of your current jobs will end prior to the end of the year.