How to Use the IRS Withholding Tax Estimator for Form W-4

The IRS withholding tax estimator is for taxpayers that are employees and have an employer that will withhold federal income tax from their paychecks on a regular basis.

In this example, we cover the following fact pattern:

1. Single filing taxpayer (not married) who is 25 years old.
2. No qualifying children or other dependents.
3. Works one job with a salary of $48,000 per year and no other income.
4. Claims the standard deduction (rather than the itemized tax deduction).
5. No federal tax credits or other adjustments to income.

IRS Form W-4 is an employee withholding certificate that helps the employer calculate how much federal withholding taxes, if any, should be taken out of an employee's paychecks.

The amount of federal withholding tax (Box 2 of the W-2) is eventually claimed on the employee's Form 1040 tax return. If the amount of tax withheld exceeds the taxpayer's income tax liability at year-end, the taxpayer will generally receive a federal tax refund.

The withholding estimator provides a Q&A approach to more accurately gauge how to complete your Form W-4.

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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

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[hathor]

Im about to pull my hair out. What numbers from this estimator go in the W4, and WHERE DO I PUT THEM??

[redstone]

There's a slider on the results page that you can move to the left that will get you recommendations. It's around where it says "Want to adjust your results"

[johnna]

Do I put gross pay before deductions like medical?

[Jackie-ussl]

Every video is for salary and from Jan- Dec. Can we have a video for single, hourly wage and a job that's started like in the middle of the year of 2022 instead? showing pay checks.

[meeks]

My question is should I put more into my 401k or more in the tax withholding? On my w4, I filled single

[nikkigerard]

THANK YOU MUCH! WAS EXTREMELY HELPFUL!