If you are an employee, the Withholding Calculator can help you determine whether you need to give your employer a new  Form W-4, Employee’s Withholding Allowance Certificate to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the calculator to help fill out the form.

Who Can Benefit From The Withholding Calculator?

• Employees who would like to change their withholding to reduce their tax refund or their balance due;
• Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
• Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.

CAUTION:    If you will be subject to alternative minimum tax, self-employment tax, or other taxes; you will probably achieve more accurate withholding by following the instructions in Pub 505: Tax Withholding and Estimated Tax.

Ready to start? Make sure scripting is enabled before using this application. Continue to the Withholding Calculator

Tips For Using This Program

• Have your most recent pay stubs handy.
• Have your most recent income tax return handy.
• Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.

To Change Your Withholding:

1. Use your results from this calculator to help you complete a new Form W-4, Employee’s Withholding Allowance Certificate.
2. Submit the completed Form to your employer.

Although the optimal outcome is to break even with Uncle Sam, many people count on a tax refund like a kind of savings account. A change to your income or circumstances may affect how much Income Tax you have to pay. It’s important to let us know about any changes right away so we can work out whether you need to pay extra or less tax. By contacting us early you can avoid paying too much tax or owing tax at the end of the year.

Check list of changes you should notify our office about:

If you get married

If you start getting a second income

If you become – or stop being – self-employed

If you start or stop getting company benefits – a company car or medical insurance

If you start getting a company or personal pension

If you start getting a State Pension or other taxable benefits

If there is a substantial change in your income

If your spouse dies