How to Figure Weekly Federal Income Tax Rates
Your federal income tax rate depends on your filing status, number of allowances, income and pay frequency. Ultimately, your federal income tax rate depends on your Form W-4 and the IRS withholding tax tables (Circular E). The latter includes the withholding tax tables for different pay schedules, including weekly.
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Instructions
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Check Line 3 of your Form W-4 for your filing status and Line 5 for your number of allowances. Retrieve the Circular E online or ask your employer for a copy.
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Calculate your federal income tax using the Circular E's wage bracket method. This method is ideal if you have fewer than 10 allowances and if your wages are within the income limit. For instance, say you earn $550 weekly and claim single/one on your Form W-4. According to page 41 of the 2010 Circular, your weekly federal income tax rate would be $51.
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Figure your federal income tax with the percentage method if you do not want to use the wage bracket limit; your income surpasses the wage bracket method limit; or you have more than 10 allowances.
For instance, say you earn $675 weekly and claim single 2. Go to page 37 of the 2010 Circular E.
Calculation: $675 -- 140.38 (70.19 x 2) = $534.62.
Then, go to page 39. Excess over $200 is $334.62 x 15 percent = $50.19 + $8.40 = $58.59, weekly federal income tax.
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Tips & Warnings
Always use the Circular E for the appropriate tax year.
Use the IRS's withholding calculator to determine if you should submit a new Form W-4 to your employer. The calculator informs you whether too little or too many taxes are being withheld from your paycheck.
References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
