Calculate The Correct Withholding For Next Year's Taxes

Did you get a big refund or owe a big tax bill April 15th of this year? If so, now is the time to adjust the amount of taxes withheld from your paycheck. Ideally, you want to get your tax bill or refund as close to zero as possible. Having the wrong amount withheld from your paycheck can lead to costly personal-finance mistakes. Calculate the proper withholdings to avoid a large refund or payment to the IRS.

To figure out how many allowances to claim, use the IRS withholding calculator.

Make sure to have on hand your 2007 tax return and most recent paycheck stub. Once you answer a series of questions, the calculator gives specific directions on how to fill out a new W-4, even offering an estimated refund amount based on the number of exemptions it suggests. Set aside an hour to complete the calculator.

Ad

Source: Hard to believe it but the Internal Revenue Service (IRS)

By Diana from Prospect, KY

Comments

Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!

Related
In This Article
Tax Tips
Tax Tips
Categories
Budget & Finance Tax TipsMay 22, 2008
Guides
Online Sales Tax
Saving Money on Taxes
Cabinet with Multi-colored Hanging Files
Organizing Paperwork For Taxes
Saving Zinnia Seeds
Saving Zinnia Seeds
A calendar page showing January 1st.
Remembering to Write the Correct Year
More
🎉
New Years Ideas!
🎄
Christmas Ideas!
Facebook
Pinterest
YouTube
Contests!
Newsletters
Ask a Question
Share a Post
Categories
You are viewing the desktop version of this page: View Mobile Site
© 1997-2016 by Cumuli, Inc. All Rights Reserved. Published by . Page generated on December 8, 2016 at 6:32:29 PM on 10.0.2.166 in 1 seconds. Use of this web site constitutes acceptance of ThriftyFun's Disclaimer and Privacy Policy. If you have any problems or suggestions feel free to Contact Us.
Loading Something Awesome!