<topic sku="core" tNum="289050" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn how Money determines your tax withholding</title><category>tax</category><klink type="cncpt">Tell me how Money determines my tax withholding</klink></index>
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<p>After you use the Tax Estimator to project your tax liability for the year, the Tax Withholding Estimator can help you calculate how much you should have withheld from your pay to avoid underpaying or overpaying your tax. The information you enter on your Form W-4, including filing status, number of withholding allowances, and additional withholding, tells your employer how to calculate your income tax withholding each pay period. Money calculates what you should enter on your Form W-4 to have the right amount withheld.</p>
<p>For more information, see your tax professional or read IRS Publication 505, Tax Withholding and Estimated Tax, on the <alink type="xtnl" href="http://www.irs.gov">IRS Web site</alink>.</p>