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Need to Change Your
Federal Tax Withholding?
IRS Has an On-Line Calculator That Can Help - Year 2008
Did you have too little or too much federal tax withheld from
your pay in 2007 – owing money or getting a large refund when
you filed your tax return? Have you recently experienced a
lifestyle change such as marriage, divorce, new child, home
purchase or retirement? Did you start a new job? If any of these
situations apply, you may want to adjust your federal tax
withholding with your employer. The withholding calculator, on the
IRS Web site at IRS.gov
can help you figure the correct amount of federal withholding and
provide information you can use to complete a new Form W-4,
Employee’s Withholding Allowance Certificate.
Before you begin, you need to have a few items handy:
- Your most recent pay stubs.
- Your most recent federal income tax return.
Here are some tips for using the withholding calculator:
- Fill in all information that applies to your situation.
- Estimate when necessary. Remember, the results are only as
accurate as the information you input.
- Check out the information links embedded in the program
whenever you have a question.
- Print out the final screen that summarizes your input and
the results. Use it to complete a new Form W-4 (if necessary)
and give the completed W-4 to your employer. Keep the print of
the final screen and a copy of your new W-4 with your tax
records.
For many people, the withholding calculator is a great tool
that can simplify the process of determining your withholding.
However, if you are subject to the alternative minimum tax or
self-employment tax or if your current job will end before the end
of the year, you will probably achieve more accurate withholding
by following the instructions in Publication 919, How Do I Adjust
My Tax Withholding, which is available at IRS.gov
or by calling 1-800-TAX-FORM
(1-800-829-3676).
Links:
Above is IRS Tax Tip - Issue Number: STT-2007-08
(modified)
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