Your Tax Question - 038

Dear John, This past year I found out the hard way that my employer was not keeping enough money out of my paycheck - it was ugly! I had to pay a lot of money, penalties, and something called the Estimated Tax every quarter this year. I have filled out a new W-4 with my employer but I am still not sure that there is enough being kept out of my weekly paychecks. Can you tell me how to check this? Thanks, Bunny.

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Hi Bunny,

Thanks for your question. The IRS has a calculator on its website that you may use to input your information to check your withholding status. Of course it is only a guide to help you avoid the dreaded Estimated Tax burden but it should get you pretty close. Use the link below and try it out - its FREE to use.

IRS Withholding Calculator

Best of luck,

John

PS. You are wise person to be checking this now rather than waiting until it is too late to make a difference - I commend you.