Tax Man Got You Down? Check Out the IRS Withholding Calculator
April 8th, 2008 | Published in Uncategorized
Money and Power Tuesdays on invisibleblog.com feature posts on personal finance and/or politics
by Jason Proe
The first time you complete your taxes and discover that you owe money can be very scary. People go to jail for not paying their taxes. Do you really want to see how tough white-collar prison is? In the alternative, getting a large refund can be exciting but you could probably make better and more responsible use of that money over the course of the year. But before you shell out money for an accountant to figure out what to do, check out the IRS Withholdings Calculator.
The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. You may use the results of this program to help you complete a new Form W-4, which you will submit to your employer.
If you have all your info handy this is a nice little tool. Sorry it’s too late to help you for 2007 but it should help make a difference in 2008.