Calculate Federal Withholding Tax
As a citizen of the United States, it is obligatory for you to contribute to the income tax system by paying your federal withholding tax. Employers are to withhold a certain amount from an employee's income and take that amount to the IRS. These are more so concentrated to pay social security taxes. There are many factors that will affect the calculations of each individual's federal income tax. First let us discuss these factors that can change the numbers of your taxes and then look at the steps on how to calculate your federal withholding tax income.
The first factor that can affect your federal income tax calculations is your marital status. Your tax brackets are similar however there are four basic sections you could fall under for your marital status. The status will determine how much taxes you will have to pay. The second factor is your number of withholding exemptions. The third factor is the amount of gross earnings on a semi-monthly basis. Over and all these are the main factors that will have an impact on the outcome or the sum of your federal withholding tax income calculations.
There are four major steps that will help
you calculate your federal withholding tax income calculations. The first step is to find the value of your total withholding exemptions that would be claimed on your present W-4 Form. Do this by taking that value and multiplying each exemption by $152.08, which is the semi-monthly number. The second step is to then subtract any salary deductions you may have, don't forget any health insurance premiums that may come from your entire semi-monthly gross incomes. The third step is to subtract the first step from the second step to calculate your taxable gross wages. And finally, step four is to use the general federal tax income table to calculate the total amount of your federal withholding tax income. Use the corresponding table in accordance to your marital status.
This is the basic method used by many tax payers to calculate their federal withholding tax incomes. Feel free to use this method as more detailed instructions are available on the IRS website. Be sure to have all your numbers correctly calculated. And most importantly make sure all your information is well matched and the right information is put into the right sections of all your taxable forms. Be informed and accurate.Source: www.teenanalyst.com