How do you estimate your federal withholding?

Answer by  flamiss22 (5081)

You don't have to estimate it. When you get your tax forms it will be on there. This is not the time for guessing games as you might pay dearly to Uncle Sam.

Answer by  Gunrunner (561)

The IRS website has a calculator program that can help you determine your correct federal withholding. It takes into account whether you have two jobs, your spouse works, if you have drawn unemployment, etc. I highly recommend this calculator to help prevent having too little or too much withheld, either of which can lead to a penalty.

Answer by  Kurt (4579)

You can use your personal tax profile to make a good estimate on your federal withholding. If you are single and have no dependents, you should use single and one exemption on your W4 form. That will be a pretty good estimate on the correct amount of taxes to be withheld.

Answer by  Chaneygirl (1755)

If your paychecks are similar every period, multiply the the amount of federal w/h on one paycheck by the number of payperiods in the year.

Answer by  gleverance (720)

The IRS has a calculator on their website to help you determine how many allowances to claim, and help estimate the final withholding for the year. It doesn't take into account all the possible deductions you may be able to take to reduce your tax liability or other sources of income that may increase it though.

Answer by  MarkWatrous (729)

Use an online calculator to do this for you. File Form 1040-ES and pay 10% *more* than your expected income tax on this form. The overpayment shows good faith.