Tax Withholding Calculator 2024 - 2025—figure out the taxes withheld from your salary to see if you’re going to receive a tax refund or owe the IRS. Your employer withholds tax from your income every pay period but keeping up with the total amount can be quite challenging. Especially if your paycheck is different at times.
That’s where the tax withholding calculator can help you see taxes ahead. Regardless of your income, the tax withholding calculator will give you an estimate of how much tax is going to be withheld from your income. This will show you the total amount of tax withheld, thus, the tax paid.
The tax withholding calculator will then compare it with your anticipated tax liability and show you whether or not you will receive a tax refund or lead up owing to the IRS.
Tax Withholding Calculator
Estimated Tax:
What will I need to use the withholding calculator?
The tax withholding calculator is made up of five different parts. You will need to provide the calculator with basic information about yourself. This includes your filing status, dependent(s) you will claim on your tax return, number of jobs you hold, pension, and other sources of income.
From there on, in order, you will enter your income, pay frequency, date and amount of the last paycheck. These are used for figuring out your gross income.
After the calculator adds up your total gross income, you can then enter the adjustments and deductions you’re going to claim on your tax return. You can also skip these parts along with the next part which is the anticipated tax credits.
It’s better to enter your anticipated deductions and credits as these are vital to your anticipated tax bill. This will help the calculator show you more accurate results. If you’re going to take the standard deduction and will not claim any tax credits, state it so that the results are as accurate as it can be.
2024 Tax Withholding vs. 2023 Tax Withholding
| Aspect | 2024 Tax Withholding | 2023 Tax Withholding |
|---|---|---|
| Standard Deductions | $12,550 (Single) | $12,950 (Single) |
| $25,100 (Married) | $25,900 (Married) | |
| Tax Brackets | 10%, 12%, 22%, 24%, | 10%, 12%, 22%, 24%, |
| 32%, 35%, 37% | 32%, 35%, 37% | |
| Child Tax Credit | Up to $2,000 per child | Up to $2,000 per child |
| Standard Withholding | Based on previous year | Based on previous year |
| tax return | tax return | |
| Tax Rates | Vary by income level | Vary by income level |
When Should You Use a Tax Withholding Calculator?
- At the Start of a New Job: When you start a new job, it’s a good time to use the calculator to ensure your withholding aligns with your tax situation.
- After Major Life Events: Any significant changes in your life, like marriage, divorce, or having a child, should prompt a reassessment of your withholding.
- Mid-Year Checkup: It’s a good practice to use the calculator mid-year to make any necessary adjustments to your withholding.
Why is the Tax Withholding Calculator Important?
Avoid Over or Under-Withholding
- Prevent Overpayment: Using the Tax Withholding Calculator can help you avoid over-withholding, which means you get more money in your paychecks throughout the year instead of waiting for a tax refund after filing your return.
- Avoid Underpayment: Conversely, it helps you avoid under-withholding, which could result in owing a large tax bill when you file your tax return.