IRS Tax Withholding Calculator

[dioxide45]

Did our taxes and want to avoid a refund next year and get our money as we get paid throughout the year.

http://www.irs.gov/individuals/article/0,,id=96196,00.html

I filled out the IRS withholding calculator and hope I got an accurate result. Just wondering if I did this correctly as I didn't follow it exactly. On the third page of the calculator in the first line I just grabbed my taxable income YTD and figured out my salary for the rest of the year and entered it in line 1. I have a number of deductions (HRA, 401K, Med, Dental, Personal Accident Ins, Group Life Ins), there really isn't lines to put these non taxable deductions. Is there some other way to fill out the form? Would it have changed my result?

We determined that we were withholding too much extra from our checks, so I reduced that for future pay checks. It is nice to get a "bonus" in February, but it is really just an interest free loan to Uncle Sam we want to avoid.

 

[PigsDad]

I filled out the IRS withholding calculator and hope I got an accurate result. Just wondering if I did this correctly as I didn't follow it exactly. On the third page of the calculator in the first line I just grabbed my taxable income YTD and figured out my salary for the rest of the year and entered it in line 1. I have a number of deductions (HRA, 401K, Med, Dental, Personal Accident Ins, Group Life Ins), there really isn't lines to put these non taxable deductions. Is there some other way to fill out the form? Would it have changed my result?

The second line of the third page has a line labled:

Enter your total 2012 contribution to a tax-deferred retirement plan, FSA or HSA.:

That is where you enter the total of all those deductions that reduce your gross income. Both lines 1 & 2 want total amounts expected for the year, not amounts for the remaining portion of the year. Seems pretty straight forward to me, unless I misunderstood your issue.

Kurt

 

[dioxide45]

The second line of the third page has a line labled:

Enter your total 2012 contribution to a tax-deferred retirement plan, FSA or HSA.:

That is where you enter the total of all those deductions that reduce your gross income. Seems pretty straight forward to me, unless I misunderstood your issue.

Kurt

I suppose I could add all other deductions there, but it isn't labeled as such. While we have an FSA and tax deferred retirement plan, we have many other deductions that come out pre tax.

 

[isisdave]

You can do this backwards, too. Look at Circular E (Publication 15) which you can find online or at the library. Use the correct table for your filing status. Look up this year's periodic wages, and verify the withholding amount your employer used. It'll be in the column corresponding to the number of allowances you claimed.

Now figure out how much you want to adjust the withholding, and go to the right until you find the number that's closest to what you want withheld. Claim that number of allowances on a new W-4.

Repeat for your state if you have a state income tax.

If you have unexpected income, like you sell stock at a profit, later in the year, or if some deduction doesn't happen, you may owe a little. As long as you have withheld as much as last year's taxes, or 90% of this year's taxes (with some exceptions) you won't owe a penalty. If things change drastically, you can make an estimated payment.