2020 Paycheck Tax Withholding Calculator
After just a few paycheck 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, number of jobs, total 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 on 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. W4, Tax Withholding and Tax Refund
Whatever you enter on the
W-4 Form, the W-4 Form will not provide you then and there with the actual Tax Withholding amount you can expect with your next paycheck. You will have to wait for your next paycheck to see the actual tax withholding amount. The PAYucator 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 Allowance as you might know them from older W-4 Forms. 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
. Completing a W-4 or plan 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, use the left hand does not know what the right hand is doing the eFile.com 2020 Tax Return Estimator now. Keep in mind, 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 over estimated 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.
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