Make Your Withholding Changes Work For You
Calculating your withholdings for the year can be beneficial for many reasons, including being able to estimate the amount of tax you will owe. Based on the amount you will be assessed, you then can decide how much tax you would like to withhold from your earnings to cover your tax liability.
You can increase your tax refund by having more tax taken out of your earnings, or you can try to eliminate your tax liability and have more money in each paycheck. This decision is personal and varies from taxpayer to taxpayer.
Online Tax Software Calculators to Estimate Withholding Choices
There are services online that will provide you with a withholding calculator. For example, TurboTax Online offers a free tax calculator with the latest tax guides right along side the calculator to help guide your decisions about your taxes. Putting your withholding changes to work for you is an important tax decision.
The following are among the information needed for the calculator to estimate your withholdings:
Filing Status – Single, Married Filing Jointly, and Married Filing Separately, Head of Household and Qualifying Widower.
Dependents - If you are able to claim another person as a dependent Information regarding your employment status and income.
The calculator will recommend the amount of tax to be withheld depending on your situation and the information you entered.
To use the tax calculators, please visit TurboTax Online today.