You can use the W4 calculator can help determine how many withholding allowances are right for you and whether or not you should increase or decrease the number you are claiming.
Deciding exactly how many withholding allowances you should claim on your W4 can be stressful. You want to be sure you are withholding enough so you don't owe a large amount of taxes at the end of the year, but you also don't want too much deducted leaving you with too little money in your paychecks.
What is a W4 Tax Form?
A withholding allowance is used in the formula when figuring the amount of income tax to be withheld from each paycheck you receive. The range of withholding allowances you can choose is from 0 up to a maximum of 10. The more allowances you have, the less money will be withheld for taxes. Your withholding allowance can be increased or decreased by completing a form w-4 that you sign and give to your employer. You have the right to do this at any time.
What information do I need to use a W4 Calculator?
In order to use the W4 Calculator you will need the following information:
- Marital status
- Gross wages per pay period
- The amount of pre-tax deductions per pay period
- How often you get paid
- How many withholding allowances you currently claim
- An estimate of current withholdings from your pay (located on a current pay stub)
I recommend visiting TurboTax free tax calculators. They offer a free W4 calculator to help determine the number of withholding allowances you should claim. Whether you would rather receive more money in each paycheck and receive a very small refund or possible break even with the IRS, or if you would rather be safe and claim less to have more tax withheld from your check to receive a larger refund at the end of the year, it is good to know what to expect when it’s time to file your taxes.
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