2020 Paycheck Tax Withholding Calculator
After just a few paycheck and W-4 related entries, the
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. Because of this, we have created the PAYucator for you, to help you learn and understand how your W-4 affects your tax return.
State related tax withholding amounts are currently not included in the PAYucator. Planning your tax withholding per paycheck without planning your next tax return is a bit like . Completing a W-4 or planning for paycheck Tax Withholding should not be done without first planning your Tax Return! More later on this. driving a car through the rear view mirror
Click image to enlarge W4, Tax Withholding and Tax Refund
First, make yourself familiar with your pay period paycheck; a
detailed overview of a paycheck. 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. For example, you might increase deductions, even though you might not have these actual deductions on your tax return, since this and other entries are your only options to plan your IRS Tax Withholding. Unfortunately, the W-4 just gives you the option to enter a fixed dollar amount you wish to have deducted per paycheck in IRS Taxes, thus we are forced to work within the options given on the W-4.
Keep in mind that the entries you make on the
W-4 Form will result in your actual IRS Tax Withholding amount on your next paycheck. 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.
Planning your tax withholding per paycheck without planning your next tax return is a bit like
. Again, completing a W-4 or planning for paycheck Tax Withholding should not be done without first planning your Tax Return! Thus, we encourage you to find out whether you can expect a tax refund or not based on your tax withholding by using the left hand does not know what the right hand is doing the eFile.com 2020 Tax Return Estimator now. 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.
While you use the PAYUcator, also
open the W-4 Form as well.
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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