HOW MUCH WILL I PAY?
Withholding from your paycheck
When you get a steady job, you fill out a W-4 Form. This form tells your employer how much tax to keep from your paycheck. This is called “withholding.”
On the form, you choose whether you want to take deductions (called “withholding allowances”) and how many. The more deductions you take, the less tax will be held out (“withheld”) from your paycheck.
If you withhold too little (by taking too many deductions on the W-4 form), you will need to pay what you still owe when you file your taxes in April. If you still owe more than 10% of your taxes, you may have to pay a penalty.
Click here to download a W-4 form.
Some jobs are on contract. Taxes are not withheld from your check. You have to plan ahead to be able to pay all of your taxes. The best way is to pay some each quarter, using the estimated tax form.
Back to Income Tax