If you are currently employed or soon to be then you may be wondering what your withholding should be when you fill out the necessary tax forms to begin working. When you begin working you will be required to fill out a W-4. This form will ask you to fill out whether you are filing single or married and the amount of withholding from your paycheck each week.
The amount entered on your W-4 can be changed at any time if you choose to. If your filing status has changed or you have had a child then you will need to complete an updated W-4.
How many Exemptions Should I Claim?
The IRS offers a publication available on their website that will allow you to see the amount that will be deducted each week depending on the amount of exemptions you take. This will help guide you to claiming the right amount so that you do not owe at the end of the year.
You may currently earn up to $276.00 weekly and not have to pay any federal tax on that amount. Once your income exceeds that amount then you will begin to be taxed at a 10% tax rate. It will go up from there depending on the amount of your income.
New Changes
The government recently changed this amount in the new stimulus package put together by President Obama. The new amount will allow between $45.00-$65.00 more each month in take home pay. This could give you back nearly $600.00 this year.
You will be taxed at the previous higher rate if your income level is higher than $95,000.00. This amount is doubled if you filed married.
To find out if you qualify for this new payroll tax credit, visit TurboTax Online.
Related posts:
- State Income Withholding Tax Tables for 2009, 2010 If you are currently employed in the United States...
- Income Tax Filing for Married Couples If you are trying to figure out your filing requirements...
- Federal Income Tax Standard Deductions Federal Income Tax Standard Deductions The standard IRS tax...
- Long Term and Short Term Capital Gains Tax Rate 2009, 2010 Your capital gains tax rate will be figured out depending...
- What are the Tax Brackets for 2010? We will start off with the basics and then get...