To ensure your quarterly and annual income taxes are accurately calculated, you will need to update your Heard account with year-to-date (YTD) tax withholdings from your W-2 form. This document will explain what withholdings are, how they are determined, and where to find them on your pay stub.
What is withholding tax:
By law, employers are required to withhold employment taxes by deducting the money from employee gross wages. Employment taxes include federal, state, Social Security, and Medicare taxes. This aims to make tax payments more manageable throughout the year, preventing large tax bills at filing time and reducing the risk of tax evasion.
How withholdings are determined:
The amount of income tax your employer withholds from your regular pay depends on two things:
- The amount you earn.
- The information you provided to your employer on Form W–4.
For help with calculating your withholdings, you may use the IRS Tax Withholding Estimator.
How to find your withholding amounts:
In order to identify your Year-to-Date (commonly abbreviated as YTD) Federal and State Tax Withholding, please reference your most recent paystub from your W-2 employer. This may be on a physical or online paystub but should be reported wherever you have access to paystubs.
Please reference below a sample section of a paystub. You will see a section of your paystub referencing Taxes and/or Taxes Withheld.
- Federal Income Tax: Please be sure to reference the "Year to Date" column. In the below example, the number you would look to identify is $15,265.29.
- State Income Tax: Please be sure to reference the "Year to Date" column. In the below example, the number you would look to identify is $5,556.72.