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W4 Withholding Calculator - Tax Withholding | Liberty Tax Service: What You Should Know

You may be able to use your tax withheld money to figure out your take-home pay. For example, if someone with a 25% federal withholding rate is earning 40,000 and has 45,000 worth of income, they need to report about 8,000 worth of taxable income to be in compliance with the Federal withholding limits. If you are working out your own pay, and you are at least two weeks late on your W2, you're at risk of earning interest income (unrelated to wage income), which may lower your take-home pay. In that situation, your W-4 calculator can be used to estimate the tax you have to pay on that amount.

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