When I started my current job, I claimed one exemption on my W-4. I just learned that I could claim zero and more money would be withheld, resulting in a big tax return. (I have to admit, I get a high from a big tax return and am willing to scrimp a little extra to achieve this).
What I want to know is this: Is there a way I can find out how much my paycheck will change before I actually make the change? I work for a big company and HR is unlikely to be helpful enough to figure it out for me.Changing exemptions - how much will my paycheck change?http://www.paycheckcity.com/netpaycalc/n
Try that link above it is a paycheck calculator.
On your W4 there is a line for additional withholding. You can enter an amount you would like withheld from your paycheck in addition to your current deduction for just 1 exemption.Changing exemptions - how much will my paycheck change?Circular E from the IRS, published every year, has tax tables showing approximate withholding for federal taxes. You can ask your payroll department for a copy of the page that applies to you, or find it online at www.irs.gov. If you are in a state that has withholding tax, they will also publish tax tables.
Depending on your pay level and whether you are single and married, federal tax usually increases around $10-$15 for each exemption decrease.Changing exemptions - how much will my paycheck change?go to www.irs.gov, individual, withholding calculator. This will tell you the correct withholding for you.
If you are trying to save money, perhaps you can have your bank or employer divert money from your paycheck into a savings account. This is much more sensible, because then at least you are drawing a small amount of interest.
The IRS prefers that you withhold as close to your taxable amount as possible.
