What Percentage of Taxes Are Taken Out Of My Paycheck?
There are a number of tax calculator tools which can be used to estimate the federal income tax you want your employer to withhold from your paycheck. This is a process known as tax withholding which impacts your tax refund, take-home pay or taxes due.
The IRS provides a free tax withholding estimator which can be used to estimate your federal income tax withholding. These results are as accurate as the information you provide, so be sure to have essential documents ready including pay stubs from your employer(s) and your most recent tax return.
How Can I Calculate My Tax Refund?
You can use a tax calculator to calculate your tax and determine if you will receive a refund or owe the IRS.
Using a tax calculator means answering a few simple questions outlined in the calculator itself. These questions often include basic personal information about the taxfiler and their income, deductions and credits they may be eligible to receive to lower taxable income and a calculation of your tax refund estimate.
Should I Claim 1 or 0?
A W-4 tax form allows you to claim allowances ranging in numbers. Your specific circumstances will dictate which allowance you claim.
Claiming a 0 allowance is acceptable if someone else is claiming you as a dependent on their tax form. A good example is a working high school student who is claimed as a dependent on their parent’s tax form. If you are single, married and filing jointly or filing as the head of a household, you may claim 1 allowance.
How Can I Estimate My Tax Refund?
Using the GOBankingRates’ tax calculator will help filers estimate their federal income tax and their anticipated refund or what they may owe in taxes. Please note this tax calculator is for federal income tax purposes only. It may be beneficial to work alongside a professional for state tax purposes or use a tax calculator specific to state tax estimates.
*This calculator provides a federal income tax estimate based on the information provided, and is not intended to be a substitute for professional financial advice.