The form W-4 has gotten quite confusing for most people. The purpose of the W-4 is it provides a "simplified" calculation for determining an "estimate" of what your taxable income will most likely be for an individual or married couple. With this information, you can determine how much tax to have your employer withhold from your paychecks. The form takes into account taxpayer's who have multiple jobs, different sources of income, and how many dependents you have in your household. This is great and all, but by no means perfect. The W-4 was designed to help you get close to your recommended withholding amount. IRS knows this isn't simple to understand or to fill out, so they came up with an on-line calculator to walk you through the complexity of filling out what used to be a simple form. If you don't want to try the on-line calculator, below you will also find a link to a great video to walk you through filling out the form.
For help with filling out your federal withholdings via form W-4, visit the link below:
IRS Withholding Calculator
Here's a link to a very helpful YouTube video on how to fill out a form W-4:
How to fill out a form W-4
Like the IRS, some states have also designed an online calculator to help you figure out what to withhold. For most individuals, we recommend roughly 9%, but you can visit the links below to get it as close as you can:
MN Withholding Calculator
WI Withholding Calculator
IA Withholding Calculator
ND (no calculator, only an on-line guide found here)
IL (no calculator, only an on-line guide found here)
Still confused? If you need help filling out a W-4, you can always contact us, and we would be happy to help you.