Author Topic: 2018 Withholding allowances  (Read 2356 times)


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2018 Withholding allowances
« on: January 11, 2018, 04:35:51 PM »
The tables in the recent release of the 2018 IRS withholding procedure have been added to the case study spreadsheet.

The implementation doesn't go as far as calculating the net income for every paycheck, but it does allow one to pick among Single vs. Married and different numbers of allowances. 

Results will of course be no better than the income, etc., estimates used. ;)

See Case Study Spreadsheet updates.

W-4 allowances, based on one's overall tax situation, may be tested in cells Calculations!F56:I64.                             
   Enter "S" or "M" (for Single or Married) in row 59.                           
   Enter the number of allowances in row 60.                           
   See the expected refund due at filing in cell I64.  An amount due at filing will show as a negative number.                           
   Adjust the entries in cells Calculations!G59:H60 to achieve your desired result.                           
   Note that there are various "safe harbors" to avoid penalties due to under-withholding.  Caveat filer.                           
   Always check the results of this or any other W-4 estimator against the actual withholding and expected tax due.                           

It shows (other than at very low incomes when the Earned Income Credit is active) that for filers with no dependents, only one wage income, standard deduction, and no other income, credits, etc., filing "Single with 2 Allowances" or "Married with 3 Allowances" (as applicable) will withhold exactly the amount of federal tax due.  For other situations, see the short set of instructions above.