2018 - 2019 Paycheck Withholding Calculator
If you are an employee, the Withholdings Calculator can help you determine whether you need to give your employer a new Form W-4, Employee's Withholding Allowance Certificate to avoid having too much, or too little federal income tax withheld from your paycheck.
Our withholding adjustment guide defines several instances, or life changes that should trigger a response from taxpayers to recalculate the number of exemptions claimed on their W-4. Employers deduct employee federal and state taxes from their payroll based on the number of exemptions each employee claims.
The number of exemptions claimed are generally related to the number of dependents you have including yourself.
IRS W-4 Withholding Calculator
You can use your results from the calculator to help fill out the new W-4 form to be submitted to your employer.
Federal W-4 Income Tax Paycheck Withholding Calculator
Use the withholding calculator results to complete a new W-4, Employee's Withholding Allowance Certificate to submit to your employer for employee paycheck withholding.
Who Can Benefit From The Withholding Calculator?
- Employees who would like to reduce their end-of-year tax refund or tax due balance.
- Employees with approximated job situations per paper W-4 worksheets.
- Couples who are both employed.
- Head of Household filers.
- Those with several children eligible for the Child Tax Credit.
In addition; Employees with non-wage income in excess of their adjustments and deductions, that prefer to have additional tax withheld from their paychecks instead of making periodic separate payments through the estimated tax procedures.
Many common life changing events can influence your federal taxes and the amount you are required to pay. Some changes entitle you to credits and deductions that lower your taxes, while others can raise your taxes.
Here are 5 Common Life changes where you should revisit your W-4 withholding to determine if an adjustment should be made.
You got married…or divorced
Getting married or divorced will definitely make a change to the amount of taxes your pay.
Married spouses who file jointly qualify for a lower tax rate and other deductions.
On the other hand, getting a divorce will move you back to single tax filing status and reverse many marital tax benefits.
Failing to adjust your W-4 withholding in respect to either of these events could render your year end tax liability significantly off target.
You have a baby…or adopt one
A new baby or adopting a child will be a major influence on your taxes. Additional allowances can be claimed for a dependent, and you may qualify for the Child Tax Credit, Child Care Tax Credit and other tax advantages. If you adopt a child, tax credit do apply. Events like these allow you to reduce your withholding to account for the added tax benefits. Not making a withholdings adjustment will likely result in a larger than expected tax refund.
You got a second job
Adding a second job happens to be the most common reason tax filers should adjust their W-4 withholding. If you have a home business, or get another full or part time job, your taxes will be influenced. Any time your income changes, your tax liability will likely change too. In the event of any income change you should revisit and make any necessary adjustment needed to your W-4 withholding. For any other extra income that comes with no W-4, you can still adjust the W-4 withholding at your main job to account for the increased income.
Your spouse gets a job, changes jobs, or stops working
Any change of household income, whether up or down, could result in your household income falling within a different tax bracket and require either or both spouses to modify their allowances. For the best accuracy, use combined income to determine proper allowances. Once this is properly determined, one spouse can claim all allowances, or they can be divided on both W-4 forms.
You’re unemployed part of the year
Changing to working part time or getting laid off from your job and staying unemployed the rest of the year would likely result in you having had too much tax withheld. However, if you get re-hired in the same year, you just need to adjust for the amount of downtime you had.
W-4 Withholding Adjustment Advantages
Making adjustments to your withholdings can help you simplify your online tax return filing by keeping you close to even with the IRS. Certainly that's better than finding out you have a great big year-end tax bill to deal with, right?
Between making adjustments in you W-4 to keep your end-of-year tax bill relatively even, it's wise to choose quality tax software brands like TurboTax and H&R Block to assure you get every tax deduction for lowering your tax bill even more. Your hard earned cash is better in your pocket rather than Uncle Sam's.
Note: The instructions in Publication 919 How Do I Adjust My Tax Withholding may help you achieve more accurate withholding calculations if any of the following apply to your tax filing situation.
- You will be subjected to alternative minimum tax,
- You will be subjected to self-employment tax, or other taxes
- If any of your current jobs will end prior to the end of the year
Additional Tips For Using The Withholdings Calculator
- Have your most recent employee pay stubs available.
- Have your most recent federal income tax return available.
You can estimate income values if necessary, but remember, the results will only be as accurate as the input you provide.