Friday, January 05, 2007

IRS Withholding Calculator

Remember to adjust your federal withholding allowances if you anticipate any major changes in your life this year. I'll be quitting my job to go back to school full-time this fall, and potentially selling my condo, so I actually need to reduce my withholding allowances.

Use this handy calculator provided by the IRS to ensure that you don't have "too much or too little income tax withheld" from your pay. In other words, you don't want to give the federal government an interest free loan for a year, but you also don't want to be banged with a huge tax bill a year either.

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