IRS Tax Withholding Estimator

A completely free online tool provided by the U.S. tax collection authority for helping you plan your taxes and prevent paying too much or tool little to the IRS. It's a miracle worker for anybody trying to fill out their W-2.

How much should you have withheld from your paycheck? This question is something that, if you're employed, you answer indirectly by filling out form W-2. If you've ever been self-employed or retired, becomes more complicated.

When you're dealing with job changes, raises, changes to a spouse's income, possibly multiple jobs, or retirement, your tax withholding likely needs adjustment to stay on track.

Using the IRS Tax Withholding Estimator, is admittedly, a life admin task in and of itself. However, imagine trying to do it on your own! By using this free tool, you will save time and money on either owing or paying too much on your federal taxes. 

The IRS' is really the most reliable authority to provide a withholding estimator since it has the information on tax inputs at the earliest possible date. There's no major market for tools like this, and the alternative would be to work with an accountant or to do it yourself using the inputs calculated in your annual Form 1040 for filing taxes. Instead, the IRS Withholding Estimator handles these inputs for you and converts the information provide into the right way of updating your tax forms for an employer or retirement plan.

Keeping your taxes on track when life is full of changes isn't easy, and many people are just simply surprised after they prepare their tax return. The Estimator features several key attributes that warrant this review:

1. The output focuses on what you need to change on your withholding form, with a slider to adjust how much of a refund you might want. This slider lets you set some wiggle room since no estimate will perfectly match your annual income situation.
2. The estimator takes into account deductions and credits, which also helps you keep these in mind as you plan your year. It can help you consider whether you want to make contributions to retirement and education-savings accounts or plan your income in a way that qualifies you for certain tax thresholds.
3. The user experience is easy to use. Honestly, it's not unlike just doing your taxes each year.