Correct tax withholding

Question

Hello, thank you for your time.

Last year, I ended up owing the IRS money on my return, I would like to avoid this.

This year I have 2 federal allowances and 1 state (CA) allowance.

I make $66k.

I normally get paid bi weekly, but for 1 week:

$1275 gross

$278 taxes

I am not itemizing or doing anything special.

How do I make sure this is correct and I don't get whacked?

Seems low?

Answer 1

Do you have much interest or investment income besides W-2 wages.

In same marginal tax bracket I think I figured that every W-4 allowance is worth $30/bi-weekly, so if you reduced fed W-4 allowances by 1 you would likely have $780 additional withholding.

So how much did you owe when filing, and would you rather pay $200 when you file, or have them withhold another $780 of your money until you file.  Your choice.

Answer 2

Visit IRS website and use the withholding calculator.

IRS Withholding Calculator

  

Purpose of This Computer Program The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. You may use the results of this program to help you complete a new Form W-4, which you will submit to your employer.

Tips For Using This Program

Have your most recent pay stubs handy.

Have your most recent income tax return handy.

Fill in all information that applies to your situation.

Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.

Consult the information links embedded in the program whenever you have a question.

Print out the final screen that summarizes your input and the results, then use it to complete a new Form W-4 (if necessary), and keep it for your records.

Answer 3

Fill out (but do not file) Form 1040-ES.  If it tells that you should be making estimated tax payments, keep decreasing the number of allowances you claim on your W-4 until the tax withheld from your paycheck goes up enough that Form 1040-ES says that you do not need to make estimated tax payments.

Answer 4

Look it up the withholding tables at www.irs.gov

Answer 5

1. Most kumpanees yuze the w4 form the IRS giv em & hav yu fill it out.

last thang on the form is xtra $ tu take outta evree paechek.  Put a number theer.

If yu get paed evree 2 weeks=25 times a yeer

$=how much yu was short last yeer/25