Guide to Estimate Federal Withholding

By A1X

Calculate Days on Mission in 2022

To calculate days on OLS in 2022:

• Enter start date in 2022, or Jan 1^st if started in 2021
• Enter anticipated end date in 2022, or Dec 31^st if not leaving in 2022.
• Check “include end day”
• Click calculate
• Note the number of calendar days for the next steps

OLS Rally Point Pay Calculator

To calculate taxable pay during 2022:

• Select your branch
• Select grade and years of service
• Select aviation pay and/or with dependents as appropriate
• Enter the number of days from date calculator
• Note how many months of HDP/IDP you earn. Multiply that by 500 (HDP-only) or 725 (HDP/IDP).��Ex. 8 mo x $500 = $4,000
• If no differential pay is shown in second box, add HDP/IDP amount to the base pay calculated. This is your annual taxable income. ��Ex. HDP [$4,000] + Base [$71,322.93] = Taxable [$75,322.93]
• If a differential pay is in second box, multiply the daily differential pay by number of days, add HDP/IDP, then add to base pay for your annual taxable income.��Ex. HDP [$4,000] + Differential [($32.91 * 243) = 7997.13] + Base [$51,030] = Taxable [$63,027.13‬]

Without Differential

With Differential

Current Fed Tax Withholding

• Open your most recent pay statement
• Note your current and year-to-date federal withholding for the IRS Estimated Tax Calculator

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IRS Estimated Tax Calculator

IMPORTANT:

• This method will estimate expected federal taxes for OLS pay only.
• You will need to perform your own analysis to estimate taxes to withhold for income such as drill pay, spouse’s income, investment income, rental income, etc.
• The output from this system may not provide the best W-4 outcome for CAPPS, the State pay system, to process. Electing to switch to monthly payroll may solve this issue.
• It is recommended that you review your pay stub and be prepared to pay the IRS directly in April 2023.

IRS Calculator

To calculate estimated taxes:

• Click on link below or copy paste into browser
• Select anticipated tax filing status. Click on the “?” for additional info.
• Select “Yes” to job that regularly withholds federal income taxes
• Select any conditions that apply, paying most attention to the last question
• Select next when complete

IRS Calculator

• Select “Salary” from source of income
• Select the appropriate time frame working on OLS
• Enter dates as appropriate
• Select paid “Twice Monthly”

IRS Calculator

• Enter date of most recent pay stub
• Enter “0” in the next two boxes
• Select “No” when asked if income is correct
• Enter the taxable income calculated in slide 3
• Enter the current federal withholding from slide 4
• Enter year-to-date withholding from slide 4
• Select any that apply

IRS Calculator

• You may select any of these; however, this guide will support OLS pay only
• If no other income sources, select “I don’t have any other sources of income”
• Click next when complete

IRS Calculator

• You may select any of these; however, this guide will support OLS pay only
• If no other income sources, select “I don’t have any other sources of income”
• Click next when complete

IRS Calculator

• You may itemize deductions, but this guide only takes standard deductions into account
• Click next when complete

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*Important: The standard deductions from the IRS do not seem to match the standard deduction from the Texas Comptroller and used by the payroll system. This may cause differences in calculated outputs.

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IRS Calculator

• On this screen, you may select many types of credits, which will impact your estimated tax.
• To select credits, click on the plus sign and follow instructions.
• Click next when complete

IRS Calculator

• On this screen, you will see an estimated amount of refund or payments based on the items you selected.
• After performing this once with OLS-only, it is recommended that you add your drill pay and other income to see a more complete picture.

IRS Calculator

• On this screen, you will see an estimated amount of refund or payments based on the items you selected.
• After performing this once with OLS-only, it is recommended that you add your drill pay and other income to see a more complete picture.
• Click next when complete

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Tax Withholding Estimator - Tax Credits

https://apps.irs.gov/app/tax-withholding-estimator/tax-credits/