Witholding how-to.

[carol b]

I make mistakes all the time. I keep forgeting to change mine.
It costs me at the end of the year.

Tax is withheld on your income because our tax system is in actuality a "pay as you go" system. Many look at taxes as something due all at once in April, but that is simply not the case. What you pay in April is the shortfall between the total amount of tax that you owe and your year-long payments. A withholding tax is imposed on salary and wage income, tip income, certain gambling winnings, pensions, and retirement distributions. You may avoid withholding on retirement payments. Withholding is also imposed on interest and dividends if you do not give your taxpayer identification number to a payer of interest or dividend income.

From yahoo finance

Witholding how-to.

Read through the rest of the article there are W-2 forms and others
that you may need to adjust. This is really helpful information.

[moneysense]

That is some very useful information. Tax time is hard enough, and any information we can glean during the year will make us all more prepared to do our taxes next year.

Now if we could just figure out an easier way for us self-employed people. A list of what is deductible for us would be great. Do you have anything available on deductions for the self-employed.