16
May
08

Adventures in W-4s

Last year’s taxes (and the huge checks I wrote to the Feds and the State) reminded me again that those of us with fluctuating incomes need to be a bit more proactive with our tax withholding.

Last month, after I remembered “Hey, I’ve only got one job now!” I used the 2008 W-4 Calculator from the IRS to re-do my numbers. This is a lot more detailed than the little worksheet attached to the W-4 form itself, and takes into account retirement disbursements, unemployment, multiple jobs, and other sources of income.

When you hit ‘Calculate’, it will come back and tell you exactly what you should put on your W-4. I At my main gig, I went from 1 exemption plus $24 to 0 exemptions… and it’s pretty much the same withholding.

*shrug*

Even if you have been at the same gig for ever and ever and ever, it can’t hurt to take a look and crunch the numbers.

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