2011, 2012 Withholding Calculator

Calculating your withholdings for the year can be beneficial for many reasons, including being able to estimate the amount of tax you will owe. You then can decide how much tax you would like to withhold from your earnings to cover your tax liability.

You can increase your refund by having more tax taken out of your earnings, or you can try to eliminate your tax liability and have more money in each paycheck. This decision is personal and varies from taxpayer to taxpayer.

There are services online that will provide you with a withholding calculator. The following are among the information needed for the calculator to estimate your withholdings:

• Filing Status – Single, Married Filing Jointly, and Married Filing Separately, Head of Household and Qualifying Widower.
• Dependents - If you are able to claim another person as a dependent
• Information regarding your employment status and income
• Whether you are paying for Child Care

The amount of money you have withheld will depend on whether you would like the IRS to hold onto your money for you or whether you would like more money in each paycheck. Most employers also offer the option for additional monies to be withheld for various reasons.

The withholding calculator will recommend the amount of tax to be withheld depending on your situation and the information you entered.