W-4 Withholding Calculator

One of the biggest changes on the redesigned W-4 form is the elimination of personal withholding allowances. Instead, the form uses a 5-step process and new Federal Income Tax Withholding Methods to determine actual withholdings. In the past, the value of withholding allowances was also tied to personal and dependent exemptions, but those exemptions were eliminated under The Tax Cuts and Jobs Act signed
in 2017.

IRS Form W-4 is completed and submitted to your employer, so they know how much tax to withhold from your pay. Your W-4 can either increase or decrease your take home pay. If you want a bigger refund or smaller balance due at tax time, you’ll have more money withheld and see less take home pay in your paycheck. If you want a bigger paycheck, you’ll have less withheld and have a smaller refund or larger balance due at tax time.

You can use the TurboTax W-4 withholding calculator to easily walk you through your withholding adjustments and help you fill out IRS Form W-4 Employee Withholding Certificate. Be sure to have information regarding your income, dependents and any additional items worth valuable deductions and credits, including education expenses and itemized deductions with you when you sit down to use the TurboTax W-4 withholding calculator.

When you use the redesigned Form W-4, your withholding is based on your expected filing status and standard deduction for the year. The new redesigned Form W-4 makes it easier for you to figure out your withholding, especially if you have income from multiple jobs, itemized deductions, the child tax credit, and other tax benefits.

The IRS is not requiring all employees to complete the new 2020 Form W-4. If you have no changes in your current situation, you may not need to file the new IRS Form W-4. The IRS designed federal withholding tables to work with both the new version of the form and existing withholding calculations from prior years. The only employees required to fill out the form are new employees and employees who want to change their withholding. If you are impacted by tax law changes, your personal situation changed, you started a new job, or you didn’t see the outcome you expected when you filed your 2019 taxes this year, you should fill out the new
W-4 form.