W-4 Withholding Calculator
Check if you are over- or under-withheld on federal taxes and see how much to adjust your W-4 per paycheck.
Optimizing Your W-4 Withholding
The goal is to withhold exactly what you owe -- no more, no less. Over-withholding results in a refund but means you had less money all year. Under-withholding means a tax bill plus potential penalties. Most financial advisors recommend targeting a small refund or break-even rather than a large refund.
How to Update Your W-4
Submit a new W-4 to your employer's HR or payroll department at any time. In Step 4(c), you can specify an additional dollar amount to withhold each pay period. For example, if you need to withhold $500 more annually and are paid biweekly, enter $19.23 in additional withholding (500/26).
Special W-4 Situations
Multiple jobs, large investment income, significant self-employment income, or major life events (marriage, divorce, new child) all affect optimal withholding. Use the IRS Tax Withholding Estimator (IRS.gov/W4app) for the most accurate calculation when your situation is complex.