– The Tax Withholding Estimator on IRS.gov helps individuals withhold the correct amount of tax from their wages.
– The tool also assists self-employed individuals in estimating their quarterly tax payments.
– The Tax Withholding Estimator does not ask for personally identifiable information and the IRS does not save the information users enter.
– Using the tool can help taxpayers avoid unexpected tax bills or penalties by ensuring the right amount is withheld from their wages.
– Taxpayers can use the results from the tool to decide whether to complete a new Form W-4 or make an additional estimated tax payment to the IRS.
– Before using the tool, taxpayers may want to gather documents such as pay stubs, Forms W-2 and 1099, and other income records to help estimate their 2023 income.
– The accuracy of the Tax Withholding Estimator results relies on the information the taxpayer enters into the tool. – Taxpayers who only have pension income
– Taxpayers with more complex tax situations
– Taxpayers who owe certain taxes such as the alternative minimum tax
– People with long-term capital gains or qualified dividends
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