The IRS encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.” This will help you make sure you have the right amount of tax withheld from your paycheck.
There are several reasons to check your withholding:
- Checking your withholding can protect against having too little tax withheld and facing an unexpected tax bill or penalty.
- Alternatively, you may prefer to have less tax withheld up front so you receive more in your paychecks and get a smaller refund.
Before you begin:
- Gather the most recent pay statements for yourself and your spouse, if applicable.
- Gather information for other sources of income you may have.
- Have your most recent income tax return handy.
Keep in mind that the Tax Withholding Estimator’s results are only as accurate as the information you enter.
To make sure your 2021 estimate is accurate, use the estimator again after you get your first paycheck in 2021.
