The Tax Withholding Estimator replaces the IRS’s Withholding Calculator, which previously provided an online method for checking withholding.
The estimator uses a plain language, step-by-step format that makes it easier to enter wages and withholding for each job held by the taxpayer and his or her spouse.
Users can separately enter pensions and other sources of income.
The estimator also:
- Determines the tax due amount close to zero or a refund amount at the time of filing
- Allows users to move back and forth through the steps, correct previous entries and skip questions that don’t apply
- Includes tips and links to help quickly determine qualifications for tax credits and deductions
- Automatically calculates the taxable portion of any Social Security benefits
- Includes a progress tracker to see the additional information needed
At the end of the process, the tool makes specific withholding recommendations and clearly explains what the taxpayer should do next.
The IRS is urging everyone to do a paycheck checkup and review their withholding for 2019. This is especially important for tax filers who faced an unexpected tax bill or a penalty this year.