Tax / Exemption Question

[TigerFan06]

Well folks, I scoured the IRS site for the info I'm looking for, and I don't see it. I'm sure it's there, but they don't make it easy. Anyway, I finally got around to changing my withholdings/exemptions so I can keep more of MY money, but I DON'T want to end up owing the IRS next year. Is there a calculator on their site (or anywhere, for that matter) that will let me figure out what I should have withheld?

[noppenbd]

IRS Withholding Calculator

Use it with a grain of salt though, output is only as good as the input.

[TigerFan06]

It was that easy, eh? I need more coffee. Thank you for the quick response!

[noppenbd]

I have used it before so I knew what to search for. I need more coffee all the time!!

[noppenbd]

One thing I would suggest is comparing the year-end total from the calculator to final taxes owed from your 2007 return. If the numbers are a lot different and your tax situation has not changed much, something is up. Also I believe as long as you pay at least as much as the previous year's taxes owed you will not have to pay any penalty, even if your withholdings come up short (although you will still owe for the shortfall, of course).