If you're an employee, your employer is required to withhold taxes (FICA, FUTA, etc.) from your paycheck. The amount your employer withholds from your paycheck depends on how many exemptions you claim on your w4 when you started the job.
Did you have a baby? Did you get a divorce? Did you get married? These are all occurances that happens but we do not think about the tax implications of these matters. Check your withholdings and adjust accordingly to reduce your chances any tax surprises at year end. Below is link to the IRS website with the withholdings calculator.
http://www.irs.gov/individuals/page/0,,id=14806,00.html
source: http://www.irs.gov/newsroom/article/0,,id=210152,00.html
Friday, August 28, 2009
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