Should I Submit a New W4 Form?
When tax payment time comes in mid-April a lot of people take strong notice of the amount that they have already had withheld or the lack of the amount that they wish that they had withheld.
There are tax withholding calculators available online to help with determining how much to have withheld.
You could be a target of over withholding.
In that case you will get a large tax return but all along you didn't have the larger weekly paychecks that you wish you had.
People who have a large scale pay check for their job, say $200,000.00 a year, will really want to pay attention to this as they will have a load of money withheld from their paychecks if they are not careful.
Starting in 2014 there are a noticeable amount of provisions that come into play here.
- The new tax bracket (39.6%).
Limits to itemized deductions,
- 3.8% Medicare tax on investment income
- Personal exemption phaseouts,
People who do not have enough taken out in withholding
These poor folks will find that they have to come up with a large amount of money before tax time kicks in (usually April 15).
At the end of the year you could be surprised when you find that you tax bill is higher than the amount that was withheld!
Perhaps, you had an increase in your hourly wage, or a change in your paycheck for many reasons, and now you see that you will have to come up with the large amount of tax money that you had not prepared for.
If you use a tax calculator think about the future as you will have to plan for that in the next years withholding amount.
There are some similar questions on the calculators.
We feel that it is interesting to list some of them here.