Tax season is upon us once again. If you are an employee, a paycheck calculator can help you determine whether you need to give your employer a new Form W-4, to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the PaycheckCity Calculator to help fill out the form.
Who Can Benefit From a Paycheck Calculator?
- Employees who would like to change their withholding to reduce their tax refund or their balance due.
- Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g.-anyone with concurrent jobs, couples that are both employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit).
- Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.
Tips for Using a Paycheck Calculator:
- Have your most recent pay stubs handy.
- Have your most recent income tax return handy.
- Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.
To Change your Withholding:
- Use your results from the PaycheckCity Calculator to help you complete a new Form W-4, Employee's Withholding Allowance Certificate.
- Submit the completed Form to your employer.
- If you are subject to alternative minimum tax, self-employment tax, or other taxes; you may want to follow the instructions in IRS Publication 919, How Do I Adjust My Tax Withholding?