| Article Source: MiNeeds.com, where consumers get | | | | which you will submit to your employer. |
| competitive bids from CPA’s. Read reviews, | | | | Tips For Using This Program |
| compare offers & save. It’s free! | | | | • Have your most recent pay stubs handy. |
| Article Link: | | | | • Have your most recent income tax return handy. |
| Tags: irs tax help , irs forms , irs tax withholding , tax | | | | • Fill in all information that applies to your situation. |
| calculator , payroll withholding , payroll taxes , payroll | | | | • Estimate values if necessary, remembering that |
| processing , payroll | | | | the results can only be as accurate as the input you |
| The American Recovery and Reinvestment Act of | | | | provide. |
| 2009, introduced several changes that affect this | | | | • Consult the information links embedded in the |
| Withholding Calculator: | | | | program whenever you have a question. |
| (1) The new Making Work Pay Credit: The new | | | | • Print out the final screen that summarizes your |
| withholding tables that employers should have | | | | input and the results, then use it to complete a new |
| implemented by April 1 have been incorporated into the | | | | Form W-4 (if necessary), and keep it for your records. |
| calculator. | | | | Who Can Benefit From This Application? |
| You should use this calculator to ensure that the | | | | • Employees who would like to change their |
| reduced withholding will not result in having too little | | | | withholding to reduce their tax refund or their balance |
| income tax withheld (possibly causing you to owe | | | | due; |
| taxes next year) if: | | | | • Employees whose situations are only |
| • You are an employee with two concurrent jobs, | | | | approximated by the worksheets on the paper W-4 |
| • You and your spouse both work, or | | | | (e.g., anyone with concurrent jobs, or couples in which |
| • You can be claimed as a dependent on someone | | | | both are employed; those entitled to file as Head of |
| else’s tax return (since you are not eligible for this | | | | Household; and those with several children eligible for |
| credit). | | | | the Child Tax Credit); |
| (2) Pension income: Non-government pension income is | | | | • Employees with non-wage income in excess of |
| not eligible for the Making Work Pay Credit, and the | | | | their adjustments and deductions, who would prefer to |
| calculator now accounts for this. If you expect to | | | | have tax on that income withheld from their |
| receive a significant amount of pension income in 2009, | | | | paychecks rather than make periodic separate |
| you should use this calculator so that you can adjust | | | | payments through the estimated tax procedures. |
| your withholding appropriately for the second half of | | | | For Special Situations If your situation is among those |
| the year. | | | | listed below, you will probably achieve more accurate |
| (3) Unemployment Compensation: The first $2,400 of | | | | withholding by following the instructions in Publication |
| unemployment compensation an individual receives in | | | | 919, How Do I Adjust My Tax Withholding? |
| 2009 is now tax free. The Withholding Calculator now | | | | • If you will be subject to alternative minimum tax, |
| accounts for this, so enter the full amount into the | | | | self-employment tax, or other taxes; or |
| calculator. | | | | • If any of your current jobs will end before the end |
| Purpose of This Computer Program The purpose of | | | | of the year. |
| this application is to help employees to ensure that | | | | NOTE: The information you provide is anonymous and |
| they do not have too much or too little income tax | | | | will be used only for purposes of this calculation. It will |
| withheld from their pay. It is not a replacement for | | | | not be shared, stored or used in any other way, nor |
| Form W-4, but most people will find it more accurate | | | | can it be used to identify the individual who enters it. It |
| and easier to use than the worksheets that | | | | will be discarded when you exit this program. |
| accompany Form W-4. You may use the results of | | | | Was the Article Useful? |
| this program to help you complete a new Form W-4, | | | | I hope you enjoyed the article! |