Tax With Holdings Based on Dependents

[myrdale]

As I continue to try and better educate myself on how the government taxes me, I am now trying to understand how the taxes withheld from my pay check are determined.

I understand that filing S0 withholds the maximum amount.

I understand that filing S1 or more withholds less, and S2 even less.

What I don't understand is how much the amount withheld is determined. Is it a set amount? Is it a percentage? Does it change from year to year?

I do have the advantage of looking at pay stubs from December 2019, when I was S0 and January 2020 when I switched to S1.

In the case of S0, the federal tax withheld was 13.57% and as S1 it was 10.62% of my gross pay. And even that isn't going to be accurate as I didn't account for 401K or medical insurance, but it at least gives some rough idea.

Googling what the amounts are is fruitless. Any of yall know?

[kork13]

In 2019-ish, they changed the W4 form such that it no longer makes any sense that I can tell. It used to be straight single or married tables, with each exemption amounting for some dollar amount of more/less withholding.

Now? I truly can't begin to understand how it works.

[disneysteve]

In 2019-ish, they changed the W4 form such that it no longer makes any sense that I can tell. It used to be straight single or married tables, with each exemption amounting for some dollar amount of more/less withholding.

Now? I truly can't begin to understand how it works.

Yep.

Best advice is to use the IRS withholding calculator. https://www.irs.gov/individuals/tax-...ding-estimator

[myrdale]

In 2019-ish, they changed the W4 form such that it no longer makes any sense that I can tell. It used to be straight single or married tables, with each exemption amounting for some dollar amount of more/less withholding.

Now? I truly can't begin to understand how it works.

From what I gather, it's black magick. I am at least glad to see that I'm not the only one who doesn't get it.

[myrdale]

Yep.

Best advice is to use the IRS withholding calculator. https://www.irs.gov/individuals/tax-...ding-estimator

Thanks for the link. My fingers are crossed that it will shed some light on the topic.

[ua_guy]

https://www.irs.gov/pub/irs-pdf/p15t.pdf

That publication from the IRS seems to list the method and values used to calculate the withholding.