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Tag: IRS withholding calculator

Posts Tagged ‘IRS withholding calculator’

How Your Taxes Will Change in 2020

Posted by Manisha Hansraj on September 11, 2019
Last modified: September 11, 2019

2020 tax

It’s almost time for another tax season!

Believe it or not, the 2020 tax season is a couple months away. The worst feeling is scrambling last-minute to find your tax documents. Why not put your mind at ease by going over information you need to know to file your 2019 taxes?

Here are the tax changes you need to be prepared for next year.

2019 Tax Brackets

You might wonder what tax bracket you’re in. The IRS announced the slightly higher brackets below: (more…)

What Are Allowances on a W-4?

Posted by admin on October 18, 2016
Last modified: April 2, 2019

You must pay tax to the IRS but your W-4 form lets you decide when to pay it.

When beginning a new job, you may remember your employer handing over a W-4 form (along with the pile of other paperwork) to fill out. Your W-4 form determines how much tax is withheld from your income based on how many allowances you claim.
You can claim a certain number of allowances depending on your life situation. Allowances conclude how little or how much your employer will withhold from your paychecks throughout the year for taxes. In other words, the size of your tax refund or tax due to the IRS after filing your taxesYou can claim as little as zero allowances or as many as apply to you and your tax situation. The ideal situation is to break even.

How many allowances should you claim?

The details to your specific situation (such as your filing status, number of children, etc.) will determine how you complete your W-4.

If your parents claim you: 

If you’re being claimed as a dependent on someone else’s tax return, you’ll most likely want to claim zero allowances. This is because your parents are claiming you as an exemption, rather than you claiming yourself.

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How to Determine Your W-4 Allowances

Posted by admin on October 18, 2016
Last modified: November 2, 2016

Confused about how to fill out your W-4 form?

If you’re completing your W-4 form and have no idea how many allowances to claim, you’re not alone. That being said, it’s important to be aware of the number of allowances you’re claiming to avoid a large tax bill after filing.

The W-4 form determines how much tax is withheld from your paycheck each pay period. That means, if there is too much tax withheld throughout the year, you’ll end up receiving a tax refund when filing your taxes. The opposite is also true. If too little tax is withheld from your paycheck, you’ll end up having to pay taxes later on.

What determines the number of allowances to claim?

The number of allowances you claim on your W-4 is dependent on your life circumstances. It depends on the number of jobs you have, if you’re married or single and how many children and personal exemptions you have along with your stance in the federal tax table.

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