In a couple of months, I will be getting a significant raise. For financial planning purposes, I'd like to know what the increase in my net pay (i.e. my paycheck) will be. Is there a way to figure this out? If possible, I'd like to do two calculations: 1) assuming that my withholding allowances remain the same; and 2) assuming that I reduce my allowances by 1. I've checked both the Fool and the IRS website, but haven't found any guidance. Thanks in advance for any help.
It sounds to me like you need Circular E. You can download this from the IRS website. It will have the information you need to do your calculations.e
Circular E is also known as Publication 15. A faster route would be your payroll office, but if they don't know or that's not practical, you can find the withholding schedules in Circular E. If you have a state income tax, check your state's site for its instructions.TMF ExROPhil Marti
For precise planning, get Publication 15, Circular E (Employer's Tax Guide). It contains the withholding tables for various payroll frequencies plus a formula for calculating withholding. That publication is available here: http://ftp.fedworld.gov/pub/irs-pdf/p15.pdf.You'll also need to contact your state's tax department (if your state has an income tax) and get the information about that withholding.
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