November 23, 2020

Tax Withholding Calculator 2020

Tax Withholding Calculator 2020 hi and welcome to this demonstration video on how to use the IRS withholding calculator which can be found at. Iris gov slash withholding when the calculator opens you'll see some general information questions first select your filing status that you expect to use for the upcoming tax filing season for me I'm going, to select married filing joint then select if somebody else can claim you as a dependent on. His or her tax return in my case I'll select no next click the continue button below note. Any information entered in this video is made up and for demonstration purposes only after clicking continue if there's any inconsistent. Or missing required information on any of the calculator screens you'll see this red text explaining the issue which you'll need to correct in order, to move on to the next screen on the general information. Continued screen you'll answer additional questions which can affect how different fields appear later on here you'll select the total number of jobs that you and your spouse if applicable are employed in my, case I'll click on the. Drop-down and select – then review these boxes and check the ones that relate to you in my case I'll. Select the text deferred retirement plan checkbox now select the number of dependents that you expect to claim on your upcoming return I'll click on the drop down and select to. Also select a view or your spouse or 65 or older or blind scrolling down in this next section you'll, enter any tax credits that you can claim such as child and dependent care child tax credit.

For any children under 17 which for me I'll select two and then any earned income tax.

Credit or other text credits you might be eligible for once you've.

Entered and selected everything you need to select the continue button below you'll use this next screen to enter any income and withholding information from your jobs notice that fields with an asterisk are. Required if there's information, that doesn't relate enter a zero in those fields using information from your pay stubs enter in the corresponding amounts for gross wages salary and tips any bonuses you might receive and because I selected the tax deferred. Box on the previous screen it now asked me to enter my contributions to the tax deferred retirement plan, you'll also enter your federal income tax withheld to date and federal income tax.

Withheld in your latest pay stubs for all jobs next select how frequently you're paid either weekly bi-weekly twice a, month on specific dates or monthly next select the date, closest to when you started the job this year but if you held the job prior to this year then keep the default the date of January 1st likewise if you expect your job to end before the. Close of this year then select the date closest to when you expect it to end.

However if you expect your job will continue all year long then again, keep the default of date of December 31st scrolling down you'll enter any non wage income information which includes other taxable earned income any unemployment income and, any other non wage income such as dividends or. Interest and lastly enter any adjustments you expect to include such as deductible IRA contributions and any education loan interest when you've, entered everything in select the continue button to proceed to the next screen on this screen, is where you'll enter any expected deductions if you know you're going to take the standard deduction which, I'm going to do leave this box unchecked and click continue you can enter amounts in the itemized fields below and leave the Box unchecked, which will allow the calculator to determine whether the standard deduction or your itemized amounts would be more beneficial to you checking the box will force, the calculator to use your entered itemized amounts instead of the standard deduction click this link for more, information on when to use itemized deductions finally click continue to, proceed to the results screen using the information on this screen can be helpful in case you're under withheld on your taxes or even if you're over withheld in either case, you can use this information to make changes to your w-4 as needed and then submit your new w-4 to your employer. Below the results is a summary of the information that you've previously entered if you feel like the information was incorrect or you. Want to start over with new amounts you can click the start over button, here at the bottom at any time for more information on the withholding calculator please visit IRS / withholding thanks for watching .

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