How to Use Withholding Calculator for Paycheck Checkup - YouTube video text script

  [MUSIC PLAYING…] HI, AND WELCOME TO THIS DEMONSTRATION VIDEO ON HOW TO USE THE IRS WITHHOLDING CALCULATOR, WHICH CAN BE FOUND AT IRS.GOV/WITHHOLDING.

WHEN THE CALCULATOR OPENS, YOU’LL SEE SOME GENERAL INFORMATION QUESTIONS.

FIRST, SELECT YOUR FILING STATUS THAT YOU EXPECT TO USE FOR THE UPCOMING TAX FILING SEASON.

FOR ME, I’M GOING TO SELECT MARRIED FILING JOINT.

THEN SELECT IF SOMEBODY ELSE CAN CLAIM YOU AS A DEPENDENT ON HIS/HER TAX RETURN.

IN MY CASE, I’LL SELECT NO.

NEXT, CLICK THE CONTINUE BUTTON BELOW.

NOTE: ANY INFORMATION ENTERED IN THIS VIDEO IS MADE UP AND FOR DEMONSTRATION PURPOSES ONLY.

AFTER CLICKING CONTINUE, IF THERE IS ANY INCONSISTENT OR MISSING REQUIRED INFORMATION ON ANY OF THE CALCULATOR SCREENS, YOU’LL SEE THIS RED TEXT EXPLAINING THE ISSUE, WHICH YOU’LL NEED TO CORRECT IN ORDER TO MOVE ONTO THE NEXT SCREEN.

ON THE GENERAL INFORMATION (CONTINUED) SCREEN, YOU’LL ANSWER ADDITIONAL QUESTIONS WHICH CAN AFFECT HOW DIFFERENT FIELDS APPEAR, LATER ON.

HERE YOU’LL SELECT THE TOTAL NUMBER OF JOBS THAT YOU AND YOUR SPOUSE, IF APPLICABLE, ARE EMPLOYED.

IN MY CASE, I’LL CLICK ON THE DROP-DOWN, AND SELECT “2”.

THEN REVIEW THESE BOXES AND CHECK THE ONES THAT RELATE TO YOU.

IN MY CASE, I’LL SELECT THE TAX-DEFERRED RETIREMENT PLAN CHECKBOX. 

NOW SELECT THE NUMBER OF DEPENDENTS THAT YOU EXPECT TO CLAIM ON YOUR UPCOMING RETURN.

I’LL CLICK ON THE DROP-DOWN AND SELECT “2”.

ALSO, SELECT IF YOU OR YOUR SPOUSE ARE 65 OR OLDER, OR BLIND.

SCROLLING DOWN, IN THIS NEXT SECTION, YOU’LL ENTER ANY TAX CREDITS THAT YOU CAN CLAIM, SUCH AS CHILD AND DEPENDENT CARE, CHILD TAX CREDIT FOR ANY CHILDREN UNDER 17, WHICH FOR ME I’LL SELECT “2”, AND THEN ANY EARNED INCOME TAX CREDIT, OR OTHER TAX CREDITS YOU MIGHT BE ELIGIBLE FOR.

ONCE YOU’VE ENTERED AND SELECTED EVERYTHING YOU NEED TO, SELECT THE CONTINUE BUTTON BELOW. 

YOU’LL USE THIS NEXT SCREEN TO ENTER ANY INCOME AND WITHHOLDING INFORMATION FROM YOUR JOBS.

NOTICE THAT FIELDS WITH AN ASTERISK, ARE REQUIRED.

IF THERE’S INFORMATION THAT DOESN’T RELATE, ENTER A ZERO IN THOSE FIELDS.

USING INFORMATION FROM YOUR PAYSTUBS, ENTER IN THE CORRESPONDING AMOUNTS FOR GROSS WAGES, SALARY AND TIPS, ANY BONUSES YOU MIGHT RECEIVE, AND BECAUSE I’D SELECTED THE TAX-DEFERRED BOX ON THE PREVIOUS SCREEN, IT NOW ASKS ME TO ENTER MY CONTRIBUTIONS TO THE TAX-DEFERRED RETIREMENT PLAN. 

YOU’LL ALSO ENTER YOUR FEDERAL INCOME TAX WITHHELD, TO DATE, AND FEDERAL INCOME TAX WITHHELD IN YOUR LATEST PAYSTUBS, FOR ALL JOBS.

NEXT, SELECT HOW FREQUENTLY YOU ARE PAID, EITHER WEEKLY, BIWEEKLY, TWICE A MONTH ON SPECIFIC DATES, OR MONTHLY. 

NEXT, SELECT THE DATE CLOSEST TO WHEN YOU STARTED THE JOB THIS YEAR, BUT IF YOU HELD THE JOB PRIOR TO THIS YEAR, THEN KEEP THE DEFAULTED DATE OF JANUARY 1ST. 

LIKEWISE, IF YOU EXPECT YOUR JOB TO END BEFORE THE CLOSE OF THIS YEAR, THEN SELECT THE DATE CLOSEST TO WHEN YOU EXPECT IT TO END. 

HOWEVER, IF YOU EXPECT YOUR JOB WILL CONTINUE ALL YEAR LONG, THEN AGAIN, KEEP THE DEFAULTED DATE OF DECEMBER 31ST.

SCROLLING DOWN, YOU’LL ENTER ANY NON-WAGE INCOME INFORMATION, WHICH INCLUDES OTHER TAXABLE EARNED INCOME, ANY UNEMPLOYMENT INCOME, AND ANY OTHER NON-WAGE INCOME, SUCH AS, DIVIDENDS OR INTEREST.

AND LASTLY, ENTER ANY ADJUSTMENTS YOU EXPECT TO INCLUDE, SUCH AS, DEDUCTIBLE IRA CONTRIBUTIONS AND ANY EDUCATION LOAN INTEREST.

WHEN YOU’VE ENTERED EVERYTHING IN, SELECT THE CONTINUE BUTTON TO PROCEED TO THE NEXT SCREEN.

ON THIS NEXT SCREEN IS WHERE YOU’LL ENTER ANY EXPECTED DEDUCTIONS.

IF YOU KNOW YOU’RE GOING TO TAKE THE STANDARD DEDUCTION, WHICH I AM GOING TO DO, LEAVE THIS BOX UNCHECKED AND CLICK CONTINUE.

YOU CAN ENTER AMOUNTS IN THE ITEMIZED FIELDS BELOW AND LEAVE THE BOX UNCHECKED, WHICH WILL ALLOW THE CALCULATOR TO DETERMINE WHETHER THE STANDARD DEDUCTION OR YOUR ITEMIZED AMOUNTS WOULD BE MORE BENEFICIAL TO YOU. 

CHECKING THE BOX WILL FORCE THE CALCULATOR TO USE YOUR ENTERED ITEMIZED AMOUNTS INSTEAD OF THE STANDARD DEDUCTION.

CLICK THIS LINK FOR MORE INFORMATION ON WHEN TO USE ITEMIZED DEDUCTIONS.

FINALLY, CLICK CONTINUE TO PROCEED TO THE RESULTS SCREEN.

USING THE INFORMATION ON THIS SCREEN CAN BE HELPFUL IN CASE YOU’RE UNDER-WITHHELD ON YOUR TAXES OR EVEN IF YOU’RE OVER-WITHHELD.

IN EITHER CASE, YOU CAN USE THIS INFORMATION TO MAKE CHANGES TO YOUR W-4, AS NEEDED, AND THEN SUBMIT YOUR NEW W-4 TO YOUR EMPLOYER.

BELOW THE RESULTS, IS A SUMMARY OF THE INFORMATION THAT YOU’VE PREVIOUSLY ENTERED

IF YOU FEEL LIKE THE INFORMATION WAS INCORRECT, OR YOU WANT TO START OVER WITH NEW AMOUNTS, YOU CAN CLICK THE START OVER BUTTON HERE AT THE BOTTOM, AT ANY TIME.

FOR MORE INFORMATION ON THE WITHHOLDING CALCULATOR, PLEASE VISIT IRS.GOV/WITHHOLDING.

THANKS FOR WATCHING. [MUSIC PLAYING…]