2020 Paycheck Tax Withholding Calculator
PAYucator tool below will provide you with your actual paycheck Federal or IRS Tax Withholding amount per selected pay period during Tax Year 2020. The new 2020 W-4 Tax Withholding Form no longer lets you enter Allowances. As of Jan. 1, 2020, you determine your 2020 IRS paycheck tax withholding by tax return filing status, pay period paycheck income, and most importantly by the estimated number of dependents and estimated tax return based tax deductions, extra tax withholding, etc.
Many taxpayers are at a loss as to how to complete the new W-4. Completing a W-4 or planning for paycheck Tax Withholding should also include
to estimate your 2020 Tax Return.
First, make yourself familiar with your pay period paycheck. Here is how a sample paycheck looks like. The W-4 form is nothing but a planning tool that helps you achieve the per pay period IRS Tax Withholding amount. The W-4 is not as legally binding as a tax return, thus use it as a planning tool.
Since the actual W-4 Form does not give you the actual IRS Tax Withholding amount, the PAYucator does based on what you enter on the W-4 form. It not only will provide you the estimated IRS tax withholding amount, it assists you in completing your W-4 as well by changing the entered values (e.g. Dependents, Deductions, etc.).
In essence, Step 3 -
Dependents - and Step 4 line item 4(b) - Deductions - of the new W-4 have become the new Allowances as you might know them from older W-4 Forms. For example, if you estimate and increase the Dependents and/or Deductions on the W-4, you will decrease your tax withholding amount on your next paycheck.
Keep in mind that a tax refund with your 2020 Tax Return in 2021 is nothing more than getting your hard earned tax withholding money back again after you handed it interest free to the IRS or State Agency throughout the year due to overestimated Tax Withholding amounts. Let the
eFile.com Taxometer help you define your 2020 tax return goals and tax withholding amounts as a basis to complete the new 2020 W-4 Form.
Important: While you use the PAYUcator, have a copy of your paycheck and the new W-4 Form open.
Taxercise your Paycheck and 2020 Tax Refund now
After you have completed your PAYucator calculation, continue your 2020 tax planning with the
2020 Tax Return Estimator. The 2020 Tax Return results will enable you to further adjust your W-4 or Tax Withholding so you can meet your personal Tax Return goals for 2020.
We at eFile.com realize this might be a challenging task for some taxpayers. If you need further assistance, please don't hesitate to
contact us now so one of our Taxperts can guide you though this tax withholding maze.
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