What taxpayers need know about using the IRS Tax Withholding Estimator

  • 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.
  • 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.
  • 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.