Withholding calculator

[Deleted]

So far I have tried IRS, H&R Block, and TurboTax estimated tax or withholding calculators.  Based on the information I provided, which is the same on all three websites, I am overpaying by either $4800, $5500, or $8700.  I assume the IRS is the most accurate but it doesn't ask about State income tax and TurboTax does.  I am fine with overpaying since I look at it as a savings account of sorts (yes, I know I am missing out on .01% in interest) but these numbers are all over the place.

Do any of you find that one of these calculators is better than the other?  Does State income tax for CA make that big of a difference?

[delawarejen]

If you itemize deductions, state income tax is essential to the calculation, but I rather doubt it's that big of a difference.

Are all 3 calculators using the same tax year? I wonder if one or more of them are using 2014 versus 2013 information.

[Deleted]

Sept 30, 2014 15:11:21 GMT -5 delawarejen said:

If you itemize deductions, state income tax is essential to the calculation, but I rather doubt it's that big of a difference.

Are all 3 calculators using the same tax year? I wonder if one or more of them are using 2014 versus 2013 information.

That is a possibility.  I will go back and check.  We do itemize but that is a BIG difference.

[Deleted]

Id start with your tax liability last year if nothing has changed.

[Deleted]

Sept 30, 2014 15:33:12 GMT -5 @juno said:

So if you don't mind overpaying, what's the purpose of doing the calculation (not snarky, just trying to figure out your goal)? I've used the IRS calculator before with decent results in CA. I think I ended up with a refund when I relied on it. But what I really keep my eye on now is last year's total tax and the underwithholding penalty. We can take the hit, so I don't mind owing at the end, I just don't want a penalty. For us, we have to withhold 110% of the previous year's total tax owed to avoid the penalty (the requirements are different for different incomes). I just make sure we're on track to hit that number. Because of that 110% we usually end up with a refund, but not always.

I am going over our savings goals and trying to anticipate how this will fit in to that.  $8700 would make a bigger difference than $4800 in our overall plan.  We are trying to save as much as possible for a possible relocation in 3-5 years.  Either way we will be getting money back, I am just curious how much.