Did you know there is a tool that will allow you to check your tax withholding exemptions and allow you to verify that you are withholding enough, but not too much, of the dreaded tax man? This tool, from the IRS, is not a perfect tool, but will allow you to make necessary changes and return throughout the year to verify that you are on track.
Typically, this tool is available in late January, but it is already available in 2014.
In order to work the tool, you will need your most current 2014 paystub(s), information on your family (ages, child care exp, etc.), and some deduction expectations for 2014.
You can find the tool, what I refer to as the W4 Estimator, by clicking here. I would encourage you to keep this link handy and run this tool again at the end of this month (in case there are any further changes) and at the end of each quarter this year.
As for your state withholding, contact your state’s Department of Revenue. My state, Georgia, does not have a fancy tool like this, but does offer an online PDF to help in your estimating.
Remember, do not overwithhold throughout he year. Get what you have earned and make your money work to your plan! This and other tools are not perfect, but they can help you get closer to owing nothing and getting nothing back.