IRS Withholding Calculator
Yesterday I mentioned a paycheck calculator from a random web site. But did you know that the IRS actually has a couple of great web-based tools? For example, you can use their withholding calculator to figure out exactly how much to have held back from your paycheck.
Why would you need such a calculator? Well, say for example you run a group of web sites that has begun to produce a not insignificant amount of income, and you’re worried of the tax implications. The withholding calculator can help you get things figure out. Or maybe you always end up owing tax at the end of the year. Or maybe you always get a refund. The withholding calculator can help you adjust things so this no longer occurs.
In order to use the tool, you’ll need to have some information handy, including a recent pay stub and last year’s tax return.
[Internal Revenue Service: IRS withholding calculator]
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JenK said,
October 1, 2007 @ 8:42 pm
This is also useful when your non-retirement, taxable investment income gets around $10K or a year….
Data Babble said,
February 8, 2008 @ 9:36 am
Would like to see how it works, but I’ve gotten this message for a while now:
Notice - The IRS Withholding Calculator is currently unavailable. We apologize for any inconvenience. Until it is available, you may want to refer to the following information: