IRS Offers Updated Online Tax Withholding Estimator

The Internal Revenue Service (IRS) recently released an updated Tax Withholding Estimator, an online tool designed to help employees target the tax refund they want by adjusting the amount of federal income tax taken out of their pay. Based on the refund amount selected, the Estimator will give the employee specific recommendations on how to fill out their Form W-4 Employee’s Withholding Certificate.

Beginning in 2020, income tax withholding is no longer based on an employee’s marital status and withholding allowances, but will generally be based on the employee’s expected filing status and standard deduction for the tax year. As in the past, employees can also choose to have an employer withhold an additional flat-dollar amount each pay period.
For more information, see the IRS bulletin IR-2020-09 or visit Tax Withholding Estimator FAQs.