W-4 Withholding Optimizer
Are you giving the IRS an interest-free loan, or risking an underpayment penalty? Find the right withholding and the per-paycheck amount to get there.
$
$
$
$
Pre-Tax Benefits
$
$
$
Deductions
$
$
Safe Harbor
$
$
Estimated Annual Tax
$7,190
8.5% effective rate
Projected Refund
$810
Based on YTD withholding
Safe Harbor Amount
$6,471
100% (or 110%) of prior year liability
Recommended Extra Per Paycheck
$0
Withholding is on track
Withholding Summary
Your Tax Picture
Total Salary
$85,000
Federal Taxable Income
$55,800
Estimated Federal Tax
$7,190
Marginal Rate
22%
Effective Rate
8.5%
Withholding Status
YTD Withheld
$8,000
Safe Harbor Target
$6,471
Current Gap
$0
Pay Periods Per Year
26
Add Per Paycheck
$0
Two-income households frequently underwithhold because each employer withholds assuming the employee has no other income. The W-4 “Multiple Jobs Worksheet” or using the IRS online Tax Withholding Estimator accounts for the combined bracket push. When two salaries are combined, more income falls into higher brackets than either employer assumes.