The IRS. Taxes. W-4s. Withholding amounts. These are all words that generally strike fear – or at least confusion – in the lives of anyone required to fill out new hire paperwork and/or file taxes. Since tax laws tend to be “revised” regularly, it’s a good idea to know and keep up with the changes. One way to make sure you’re maximizing your withholdings is with the IRS Withholding Calculator.

But before you click to calculate, use these tips to help minimize your fears and your frustration levels:

1. Have your most recent tax return and Form 1040 close by.

2. Pull out your last six pay stubs.

3. Keep in mind the Calculator doesn’t save your work so you may want to either screen shot the information or write it down.

4. You can use the Calculator as many times as you need to, especially if your work or income change at any time during the year.

Another tip from an article on IRS website states, “IMPORTANT NOTE: This Withholding Calculator works for most taxpayers. People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe self-employment tax, alternative minimum tax, the tax on unearned income of dependents or certain other taxes, and people with long-term capital gains or qualified dividends.”

https://apps.irs.gov/app/withholdingcalculator/

If after you do the math you need to update your withholdings, this new W-4 form will walk you through the process.

And if after you check out the information and you’re still a little intimidated by it all, don’t worry! Our heads don’t spin and our eyes don’t cross trying to understand the process, and neither should yours. Contact us today to save yourself from becoming a withholding tax bobble head!