Who Can Benefit From Using The IRS Withholding Tax Calculator?
- Employees who would like to change their withholding to reduce their tax refund or their balance due;
- Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
- Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.
CAUTION: If you will be subject to alternative minimum tax, self-employment tax, or other taxes; you will probably achieve more accurate withholding by following the instructions in Pub 505: Tax Withholding and Estimated Tax.
Tips For Using the Calculator:
- Have your most recent pay stubs handy.
- Have your most recent income tax return handy.
- Estimate values if necessary (results can only be as accurate as the information provided).
To Change Your Withholding:
- Use your results from this calculator to help you complete a new Form W-4, Employee’s Withholding Allowance Certificate.
- Submit the completed Form to your employer.