Welcome to Our FAQ Section

At Federal Tax Withholdings Solutions LLC, we understand that navigating tax withholding and using our CTW Tax Calculator can raise some questions.

Our FAQ section is designed to provide you with quick and easy answers to the most common inquiries.

Whether you're new to tax calculations or a seasoned taxpayer looking for specific details, our goal is to ensure you have all the information you need to use our services confidently.

General Information

CTW Tax Calculator was developed to simplify the process of determining the amount of federal taxes to be withheld each pay period. It helps individuals estimate their tax withholdings.
CTW stands for "Calculate Tax Withheld," reflecting the primary function of our CTW Tax Calculator in helping users determine their federal tax withholdings.
Calculating tax withholdings is beneficial for employees with paychecks where taxes are withheld by the employer. This includes new graduates, job changers, first-time job holders, and everyday people.

Using CTW Tax Calculator

  • W-2 statements with the following elements:
    • Box 1 Wages
    • Box 2 Taxes withheld
  • Payroll statements with the following elements:
    • Net wages
    • Taxes withheld
  • Hourly rate:
    • Hourly rate per hour
    • Number of hours worked per week
    • Taxes withheld
  • Salary statements with the following elements:
    • Gross wages
    • Taxes withheld
  • Relationship statuses are the following:
    • Single
    • Married filing separately
    • Married filing jointly
    • Head of household
    • Qualified surviving spouse
    • Every other week
    • Twice a month
    • Monthly
    • Weekly

    While there are various factors that can affect your tax withholdings, CTW Tax Calculator solely focuses on changes related to your wages. These include:

    • Life changes: Marriage or Divorce.
    • Job Changes: Starting a new job, losing a job, or changes in your income (such as a raise or a bonus).
    • Adjustments to Pay Frequency: Changes in how often you get paid (e.g., switching from monthly to every other week).
    • Significant Income Changes: Any substantial increase or decrease in your wages.
    • Tax Law Changes: Updates in tax laws that might affect your tax liability.
    • Annual Review: It's a good practice to review and potentially update your tax withholdings at the beginning of each year or when filing your annual tax return.

    For other changes that may impact your overall tax situation, it's recommended to consult additional resources or a tax professional.

    CTW Tax Calculator is specifically designed to help minimize the amount of tax being withheld, thereby helping to minimize your potential underpayment penalties or a large tax bill at the end of the year.

    Tax Withholding and Filing

    W-4 Employee's Withholding Certificate form is an instrument developed by IRS for employers to distribute to their employees to determine how much taxes to be withheld. It helps determine the amount of federal taxes to be withheld from paychecks based on factors like wages, graduated tax rates, and filing status. The information from this form can be used with CTW Tax Calculator for tax withholding calculations.
    The total effect of the changes to your tax withholdings will not be fully realized until one year from the date you update your W-4 Employee's Withholding Certificate form, aligning with the corresponding tax filing year when your W-4 Employee's Withholding Certificate form was updated. This ensures that the adjustments are applied consistently over each pay period throughout the entire year.
    If CTW Tax Calculator determines that you do not owe federal taxes or owe less than $500, you will be automatically exited from the website. This feature ensures that only those who need to make adjustments to their tax withholdings will proceed further. Our goal is to streamline the process and save you time by only focusing on users who require immediate action.
    At this time, CTW Tax Calculator is designed for individuals with a single job and for married couples where each spouse has a single job or where only one spouse is working.
    No, the focus of CTW Tax Calculator is on ensuring the estimated amount of taxes are withheld to help minimize underpayment and potential tax liabilities, not on promising large refunds
    Other reported sources of income documents (e.g., 1099, 1099R, SSA-1099) are not used because these documents are not reported until the end of the year.
    Tax withholdings are only included as part of the tax calculations if the amount of tax withheld exceeds the total taxes owed.

    Married Filing Jointly

    If only one spouse is working under the "Married Filing Jointly" filing status:
    1. For the non-working spouse:
      • Select the same wage type and pay frequency as the working spouse.
      • Enter 0 in the wage input field.
    2. For the working spouse:
      • Select their wage type (e.g., salary or hourly) and pay frequency (e.g., weekly, bi-weekly, semi-monthly, or monthly).
      • Enter the total wage amount in the wage input field.
    If the lower wage earner in a married couple earns less than the standard deduction (currently $30,000), no federal income tax will be withheld from their paycheck. This is because their income falls below the threshold for taxable income after applying the standard deduction, meaning no federal taxes are due on that income.

    Payment and Pricing

    Cost are based on filing status:

    • Single, Married filing separately, Head of household, or Qualifying surviving widow(er): $35
    • Married filing jointly: $45

    All sales are final.

    Sale receipt will only be sent via SMS.

    Please provide your cellphone number when making the payment.

    Payments for CTW Tax Calculator are made through secured Square software within CTW Tax Calculator. Here’s an explanation:

    1. Prompt for Payment: After the user determines the amount of federal taxes owed, they are directed to the payment section.
    2. Square software: secured Square automatically select payment based on filing status selected.
    3. Processing Payment: The user enters their payment details into the secured Square system.
    4. Confirmation: Once the payment is processed, the user receives a text file with tax withholding details is generated.
    The user receives a text file with the withholding details is generated.

    Legal and Privacy

    Data Privacy

    To ensure data privacy, no name, address, city, state, zip code, and social security number are requested. For tax withholdings calculations, wages are requested through W-2 statement Box 1 for wages and Box 2 for taxes withheld issued by the employer or payroll statements that contain gross wages and taxes withheld.

    Data Security

    Data is only available during real-time execution. Data is not stored or shared. Data is deleted after execution.

    Click Disclaimer on taskbar for full disclaimer disclosure.

    All sales are final.

    Click Final Sale Terms on taskbar for full sale final policy.

    Troubleshooting and Support

    If you encounter any issues with CTW Tax Calculator's calculations or require further clarification,

    please simply email us at support@calculatetaxwithheld.com with the following information:

    1. Filing Status: (e.g., Single, Married filing separately, Head of household, Qualified surviving widow, Married filing jointly)
    2. Wage Type: (e.g., W-2, Paystub, Hourly rate, Salary)
    3. Pay Frequency: (e.g., Every other week, Twice a month, Monthly, Weekly)
    4. Wage Amount: (Gross wages)
    5. Email a copy of SMS sale receipt for verification of purchase in secured Square database.
    6. Include your email address.

    This information helps us resolve your issue efficiently.

    Our dedicated support team will promptly address your inquiries.

    Your satisfaction is our priority.

    We are committed to ensuring that your tax-related queries are resolved with utmost care.

    Feedback and Improvements

    Simply email us at support@calculatetaxwithheld.com with the subject "Feedback on CTW Tax Calculator".

    Briefly describe what you liked, any issues, and suggestions.

    Updates and new features will be released periodically.

    Additional Information