Tax Tip 2021-98: What taxpayers need know about using the IRS Tax Withholding Estimator

IRS Tax Tips July 8, 2021
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:  Tax Tip 2021-98 What taxpayers need know about using the IRS Tax Withholding Estimator All taxpayers should use the IRS Tax Withholding Estimator to check their withholding. This tool helps people make sure their employers are taking out the right amount of tax from the employee's paychecks. It can be used by workers, as well as retirees, self-employed individuals and other taxpayers. The money withheld from an employee's paycheck throughout the year should cover the amount of tax they owe. Taxpayers can follow these simple steps for using the estimator. Results will include a recommendation of whether the taxpayer should consider submitting a new Form W-4, Employee's Withholding Allowance Certificate, to any of their employers. Step 1: Gather documents. Before beginning, taxpayers should have a copy of their most recent pay stub and tax return. Taxpayers should go to the main Tax Withholding Estimator page on IRS.gov. Once there, they should carefully read all information and click the blue Tax Withholding Estimator button. Step 2: Answer the questions. Users will answer a series of questions about their specific tax situation. When they complete each section, they click the blue "Next" button that takes them to the next section. Step 3: Review the results. Taxpayers use the estimator's results to determine if they need to complete a new Form W-4, which they submit to their employer, not to the IRS. Many employers have an automated system for submitting changes for Form W-4. Employee's should check with their employer to see if this option available. The tool helps the user target a tax due amount close to zero or a refund amount. Those who receive pension income, can use the results from the estimator to complete a Form W-4P and give it to their payer. More information: How to Use the IRS Withholding Estimator for Paycheck Checkup - YouTube Share this tip on social media -- #IRSTaxTip: What taxpayers need know about using the IRS Tax Withholding Estimator https://go.usa.gov/x6FRS Back to Top         Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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