Federal Withholding Tables Calculator 2010, Highlights Harbor Financial
January 27, 2010 (PRLEAP.COM) Business NewsHarbor Financial today highlights, employees may need to increase withholding amounts due to the Making Work Pay provision in the American Recovery and Reinvestment act of 2009 which caused changes to the federal income tax withholding tables. If too little tax is being withheld the taxpayer may end up having tax due instead of expecting a refund.
The federal withholding calculator can assist with calculating the proper amount of income tax to be withheld. The IRS provides a federal withholding calculator for taxpayers to estimate the correct number of allowances. Harbor Financial can assist the taxpayer with federal withholding tables, calculators, and guided information on how to calculate this amount along with videos.
Refunds, Penalties, and Interest
If too much tax is withheld, a large refund can be expected. Each paycheck could have had more money in it for the employee to use. If too little tax is withheld, penalties and interest fees can be expected. This is why it is so important to calculate the federal withholding amounts taken out of each check. The W-4 Form is where the changes need to be made if they need to be adjusted. The IRS web site has the W-4 Form available for download.
When to Change W-4 Forms
If too little tax was taken out and taxes were due at tax time or if too much was taken out and a large refund was issued. Employees will also want to make an adjustment to the W-4 Form if a lifestyle change occurred, a change in wages, increased or decreased income not subject to withholding, increased or decreased adjustments to income, and increased or decreased itemized deductions or tax credits.
How to Change W-4 Forms
To increase withholding amounts the taxpayer can decrease the number of allowances on line 5 or enter an additional amount to be withheld from each paycheck on Form W-4 line 6. To decrease withholding amounts decrease any additional amount being withheld or increase the number of allowances on line 5. Complete Worksheets 1 and 9 and show that more tax has been withheld than the projected tax liability.
Harbor Financial How to Videos
A federal withholding calculator can be accessed at Harbor Financial. Many how to videos concerning a large variety of tax topics is available for taxpayers to take advantage of. Tax questions will be answered and directions are shown in an easy to understand manner.
Visit harborfinancialonline.com for help with federal withholding tables and calculators.