Tax calculator -income tax withholding W4 form
2018 is a very important tax year because of the changes in the new tax law. One of the most important forms for employees to revisit is the W4 form.
The W4 form is the form that is used to calculate the tax withholding for employees. You may have completed this form as part of your initial payroll paperwork.
IRS has provided a withholding check calculator that you can use to ensure your tax withholding is correct.
There are several reasons to check your tax withholding :
- Paying too less : This will help you avoid unnecessary end of the year penalties and interest.
- Paying too much : The average tax refunds are $2,800. This is a lot of extra dollars you are paying upfront. By correctly calculating your withholding tax, you can receive more in paychecks(disposable income)
Withholding calculator.
Below is the IRS free tax withholding calculator link https://apps.irs.gov/app/withholdingcalculator/
This calculator helps you determine whether you are required to give your employer a new Form W-4
IMPORTANT NOTE: The calculator is useful for most taxpayers. If you have a complex tax situation, it be best to consult a tax professional. Publication 505, Tax withholding and estimated taxes is an additional source of information. This is for taxpayers who owe self-employment tax, alternative minimum tax, the tax on unearned income of dependents or certain other taxes, and people with long-term capital gains or qualified dividends.