TAX Withholding calculator 2013
Everyone in this United States has a responsibility to pay their fair amount of taxes. The Federal State withholding calculator can help a person get a general idea of how much taxes they owe and if they should fill out a new W-4 form with their employer to change their tax liabilities.
This will a person know if they are paying too much or too little taxes that are deducted from each paycheck.
There are many people that can benefit from using the withholdings calculator. Employees can use the calculator to try to reduce the amount of taxes that they are paying.
Employees who have their taxes approximated can also use the calculator. This also includes employees that are working more then one job, those that can file their taxes as Head of Household, and those that have children that are eligible for the Child Tax Credit. Employees that also received non wage income that may be different from their adjustments and dedications that would rather have additional taxes taken out of their paychecks then make periodic payments that are estimated.
The Federal withholdings calculator is easy to use and can be accessed on the internet by the general public. When using this calculator a person should have their paycheck and copy of their most recent tax return handy. A person starts by selecting the state that they are living in so they are taken to the correct calculator. A person then has to enter their information in the calculator. The person selects the year they would like to look at their payroll tax for.
The federal withholding status is then selected. This is where a person states if they are married or if they are single. A person then enters the amount of federal allowances they are going to claim on their W4. If a person wishes that an additional amount be withheld from their checks they can also enter the amount here. The next field to enter is the number of pay periods in the year.
This pay periods will be different if a person gets paid weekly, bi weekly, or monthly. They also enter their gross amount for each paycheck. There is the amount before taxes are taken out. The next field a person enters the amount of income to be taxed as supplemental income if they have any. Any before tax retirement benefits are the next amount to be entered in this calculator. This includes 401 K plans or the 403 plans as well. A person then enters the amount of medical or child care expenses they claim on their taxes. There is another field to enter the gross salary at the year to date. A person then hit’s the calculate button and can see their tax responsibility. It may be more or less then the amount they are currently paying. If there is a difference a person should fill out a new W4 form with their employer to make sure they meet their tax responsibility but do not have to pay more then their share of taxes.