Tax Withholding Calculator—figure out the taxes withheld from your salary to see if you’re going to receive a tax refund or owe the IRS. Your employer withholds tax from your income every pay period but keeping up with the total amount can be quite challenging. Especially if your paycheck is different at times.
That’s where the tax withholding calculator can help you see taxes ahead. Regardless of your income, the tax withholding calculator will give you an estimate of how much tax is going to be withheld from your income. This will show you the total amount of tax withheld, thus, the tax paid.
The tax withholding calculator will then compare it with your anticipated tax liability and show you whether or not you will receive a tax refund or lead up owing to the IRS.
What will I need to use the withholding calculator?
The tax withholding calculator is made up of five different parts. You will need to provide the calculator with basic information about yourself. This includes your filing status, dependent(s) you will claim on your tax return, number of jobs you hold, pension, and other sources of income.
From there on, in order, you will enter your income, pay frequency, date and amount of the last paycheck. These are used for figuring out your gross income.
After the calculator adds up your total gross income, you can then enter the adjustments and deductions you’re going to claim on your tax return. You can also skip these parts along with the next part which is the anticipated tax credits.
It’s better to enter your anticipated deductions and credits as these are vital to your anticipated tax bill. This will help the calculator show you more accurate results. If you’re going to take the standard deduction and will not claim any tax credits, state it so that the results are as accurate as it can be.