Saturday, July 11, 2009

IRS Online Withholding Calculator

Q I have been working all year. My husband did not work during the first months of the year, but he just started a new job. How do I know if we are having the correct amount of federal income tax withheld from our checks?

A The IRS has a great ‘Withholding Calculator’ on their website at:,,id=96196,00.html?portlet=7

The purpose of the calculator 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.
With the information from the calculator, you can complete a new Form W-4, which you will submit to your employer.