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I could use a peer check on the following. I am in the USA. I am trying to understand why my estimated federal tax withholding does not match the IRS's anticipated tax obligation (estimated using their online tool). The IRS gives me the estimate but it doesn't tell me how they calculated it, which is what I would like to understand.

Here are the steps I followed. Did I miss something? I find I am coming up about $750 lower than the IRS anticipated tax obligation. I'd like to land on approximately the same number they do.

  1. Calculated adjusted gross income. I take gross income and subtract out pre-tax line items. Using the same amounts I provided the IRS estimator tool.
  2. Take standard deduction.
  3. Find my tax obligation using 2025 tax bracket tables. I split it up as explained on the IRS website (regarding the progressive tax system).
  4. I reduce the total obligation by my tax credits.

Did I miss anything major? Does anything stick out that would explain the discrepancy?

Nukesub
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1 Answers1

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When there are issues regarding estimating withholding, one issue that trips up people is the difference between every two weeks and twice a month.

Another issue can be when some items are expressed as $x a month, and others are expressed as $y a paycheck.

mhoran_psprep
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