W-4 Calculator for 2015, 2016
Are You Having Enough Tax Withheld?
The amount you receive in your paycheck is determined by two factors. The information you enter on your W-4 form and how much money you make each pay period.
You can choose between a bigger tax refund or more money in your take home pay. Allowances can easily be determined with the W-4 calculator by TurboTax. (After clicking link, find calculator on bottom of page.)
The important thing to remember is to have enough tax withheld, so you don’t end up with a big tax bill when tax time comes around.
The more allowances you claim, the less tax is withheld and your paycheck is bigger. The opposite is also true, the less allowances you take more money is withheld from your paycheck and your tax refund is bigger. How many allowances you decide to take is up to you. Having additional tax withheld is also an option.
You Should Update Your W-4 Every Year
When you begin a new job the first thing you typically do is fill out Form W-4. Your personal allowances worksheet walks you through the questions to add up how many allowances you will take. The first question asks if anyone else can claim you as a dependent. If no one else can claim you as a dependent you enter the number one. Now you have one allowance and you can continue on to answer the rest of the questions. More allowances taken adds up to less tax being taken out of your paycheck.
You might need to use the calculator to make changes to your form if you notice you are receiving a large tax refund for example: $1,000 or more, or if you have a large tax bill on your income tax return. It is also smart to adjust the information if big changes have occurred in your life such as, a marriage, divorce, new baby, or a new job has become part of your life. If you use the TurboTax, the software will walk you through the process in a breeze.
The Personal Allowance Worksheet
The Personal Allowance Worksheet asks questions about;
- Your marital status
- Dependents you’re eligible to claim
- Child tax credit amount
- Child and dependent care expenses
- If you can claim head of household
See IRS Publication 501 for the explanation of claiming head of household.
The calculator will walk you right through the process to help you make the wisest choice for your personal situation in life right where you are today. There is no need to wonder if you will owe a lot of money to the IRS or if you’re going to get a tax refund this year. Tax planning is very important and can make a big difference for your budget. Don’t be surprised by the final outcome of your income tax return.
Use the W-4 calculator to see where you need to make the necessary changes. (After clicking link, find calculator on bottom of page.)
TurboTax Online offers all of the tax tools you need for your tax planning, tax preparation, and tax filing. The best part is the guarantee of having the biggest possible tax refund or least tax owed. You can try before you decide to buy. Payment is not asked for unless you decide to file your taxes or decide to print your income tax return. Give the calculator a try today to take control of your money!