W-4 For Federal

[Grandkids7]

Hi there, I need to fill out the W-4 form from my employer.

What is the percentage of my paycheck should I have them take out for my Federal? 

[Joe_D-CPA-PFS-CFP]

Hi Grandkids7,

Thank you for the question! Based on the limited information in your question, I can show you how to determine a reasonable way to determine a percentage for withholding.

You can take your recent 2022 tax return and look at Form 1040 line 24 "Total Tax" and divide it by line 15 "Taxable income". This would calculate your effective tax rate. Also, this method assumes 2023 would be similar to 2022 in regard to filing status and income.

Another way would be to use Intuit's TaxCaster and estimate your tax liability for 2023.

If you would like to pay in your tax through withholding tax, you can use Intuit's W4 Calculator to assist in filling out the Form and providing data on the effect of changing the variables associated with changing your withholding.

If you need additional information, post in the comments.