Were you surprised by the amount of taxes you owed last year? The IRS created a new Tax Withholding Estimator that can help you figure out the amount of federal tax that should be withheld this year. We have tested this and feel that it is much better than their previous estimator. It will give you an estimate of how much tax you may owe or be refunded and will give you options to change the results. If it tells you that you’ll owe a lot of taxes, it will give you simple instructions on how to adjust your withholding in order to achieve your intended target. We recommend that our clients go through the 5 minute process so that there are no surprises at tax time next April. We also recommend that you work with your accountant to determine how much should be withheld from your paycheck or how much you should pay in quarterly estimated tax payments.