Financial Fitness

Improved Tax Withholding Estimator Helps Workers Calculate the Tax Refund They Want; Shows How to Fill Out New 2020 W-4

February 2020 

The Internal Revenue Service launched a new and improved Tax Withholding Estimator, designed to help workers calculate the tax refund they want by determining the correct amount of federal income tax they want taken out of their paychecks.

The Tax Withholding Estimator, available on IRS.gov, incorporates changes from the redesigned Form W-4, Employee’s Withholding Certificate, which employees can fill out and give to their employers this year if they want to make changes.

The IRS urges everyone to decide if they want to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. If an adjustment is needed, the Tax Withholding Estimator provides specific recommendations regarding how to fill out the Form W-4 this year.

For more information regarding the updated Tax Withholding Estimator and the redesigned 2020 Form W-4, visit IRS.gov. For YouTube videos on IRS tax withholding, visit the IRS Tax Withholding Estimator.

Source: Internal Revenue Service, Newswire, Issue IR-2020-09, January 14, 2020