IRS Withholding Calculations

• Use the IRS Withholding Calculator to calculate your withholding allowances if you have more than one job, if your spouse works or if you itemize your deductions. The IRS Withholding Calculator is on the IRS web site and is easy to use. Alternatively, you may use the Personal Allowances Worksheet on Form W-4.
  
  

Exemption from Withholding

• You may not claim exemption from withholding unless in the previous tax year you had a refund of all federal income tax withheld because you had no tax liability and, further, you expect a refund of all federal income tax withheld during the present tax year because you expect to have no tax liability. To claim an exemption from withholding, write "exempt" on line 7 of Form W-4. Claiming "exempt" is not the same as claiming zero. By claiming exempt, no taxes will be withheld. By claiming zero, the highest amount of tax will be withheld.
  
  

Additional Amounts Withheld

• You may have additional amounts withheld from each paycheck. To have a specified additional amount withheld from each paycheck, write the amount you want withheld on line 6 of Form W-4. You may want to have additional amounts withheld to ensure that there is no tax liability owed at the end of the tax year.