How to Use a W-2 Calculator

Calculating W-2 withholding may appear daunting, but the IRS provides taxpayers with an easy to use question-and-answer style format online calculator to answer the questions typically considered when completing a Form W-4 for withholding.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Recent paystubs
• Recent income tax return
• Pencil
• Paper

1. Gather together your recent paystubs and income tax return. If you are an independent contractor and your only work results in an end of year 1099 from your client, you should not use a W-2 calculator. If you are both employed and self-employed, read Publication 919 by clicking on the link in the Resources section.
2. Visit the IRS Withholding Calculator site by clicking on the link in the Resources section. The calculator consists of four question pages and one summary page.
3. Calculate your withholding by following the provided instructions. "Reset" the calculator or "Start Over" as needed or click any embedded links when uncertain how to proceed or for definitions of tax terms.
4. Provide your Filing Status and Dependent Status on Page 1 and move on to the next page by clicking "Continue." On Page 2, provide the requested General Information and Credits. On Page 3, provide your Income and Withholding and any Adjustments.
5. Estimate your Deductions (medical and dental, charitable contributions, or job expenses) on Page 4 and then click "Continue."
6. Review your results on Page 5 and print. If you need to complete a new W-4, go to the IRS website and type "W-4" in the IRS "Search" field. Click the "Search" button, select the ".pdf" from the list and print.