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Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4
The IRS encourages all taxpayers to review their federal withholding at least once a year to make sure they're not having too little or too much tax withheld.
Taxpayers whose employers withhold federal income tax from their paycheck can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides recommendations to help aim for the withholding amount that's right for them.
Taxpayers should check with their employer to update their withholding or submit a new Form W-4, Employee's Withholding Certificate.
Adjustments to withholding
Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction.
Either way, those who need to adjust their withholding must submit the new W-4 information to their employer as soon as possible since withholding occurs throughout the year.
Individuals who should check their withholding include those:
Reasons to use the Tax Withholding Estimator
Individuals who should not use the Tax Withholding Estimator are those:
Who have a pension but not a job. Form W-4P, Withholding Certificate for Pension or Annuity Payments, should be used to estimate this tax withholding.
Taxpayers should prepare before using the Tax Withholding Estimator by having pay statements for all jobs, information for other income sources and their most recent income tax return. The tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers.
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