Withholding Too Much

Today TaxMama helps Bradley from Simi Valley, CA who laments. “I have been claiming 0 exemptions on my paycheck. Where is there a table I can see, so I’m not giving the IRS so much money, yet know how much to pay so I don’t owe anything at the end of the year?”


Well Bradley, I don’t think you really want to explore the payroll tax tables. They can confound even the brightest of men.

You might want to try out IRS’s nifty withholding calculator instead. I just tried it and it’s really rather good.
http://www.irs.gov/individuals/article/0,,id=96196,00.html

But, if you really think you’re up to see the payroll tax tables, OK.

order the publication 15 from IRS’s forms line by calling 800-829-3676 TaxForm

Or Here are the tables your payroll department uses
http://www.irs.gov/publications/p15/ar03.html

I really wish that IRS would label them clearly on the website, instead of ‘wage bracket 1, 2, “ etc.” You’ll simply have to click on each one until you find the one that applies to you.

They’re broken down by wage level and pay period – weekly, bi-weekly, semi-monthly, monthly, quarterly, semi-annually, annually, and daily or miscellaneous. Then, they’re also broken down by filing status – single or married.

Have fun with them.

And if you don’t want to pay IRS too much, the reasoning about how much you have to pay in order to avoid an underpayment penalty is all laid out here.
http://www.taxmama.com/Articles-cur/es.html

And remember, you’ll find answers to lots of other business tax questions and other tax information, free. Where? At TaxMama.com

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