W4 Calculator for calculating how much federal income tax you’re going to withhold during the course of the tax year. This will give you an idea of whether or not you will owe to the IRS or receive a tax refund.
Use the W4 calculator to see how much you need to withhold in extra to pay off your tax liability. Since you wouldn’t want to end up owing to the IRS, it’s best to withhold tax slightly more than the taxes owed.
Click here to open the W4 calculator to see how much tax you’re going to withhold.
The W4 calculator, also known as the withholding estimator will give you an idea of these. This is such a useful tool as you will be able to learn about the outcome of owing to the IRS or receiving a refund before filing a federal income tax return.
How to adjust taxes withheld?
There are a couple of things you can do to increase or decrease taxes withheld. Since Form W4 is what provides your employer with your anticipated tax return, use it to adjust taxes withheld.
If the W4 calculator shows that your withholding less tax than necessary, enter an extra withholding amount on your Form W4.
Note: Enter an extra withholding amount for each pay period. The amount you enter will be withheld in extra for every pay period.
This is going to be a better option in comparison to filing a new Form W4. Since you know how much tax you’re withholding based on the current W4, enter an extra withholding amount to increase the taxes withheld.
As for how you can decrease taxes withheld, file a new Form W4. A higher tax withholding than necessary is something you should always avoid. After all, you wouldn’t want to loan your hard-earned money to the government.
First and foremost, file a Form W4 with the most correct information available to you. As long as the information provided on Form W4 is correct, there isn’t anything else you need to do. However, a higher tax withholding may be caused by the multiple jobs section on Form W4. If you’re holding more than one job you can check the box. This should be done only if both jobs need to pay you a similar rate. If not, more tax than necessary may be withheld from your income.