IRS Withholding Calculator & W-4 Tax Forms

Video Transcript

"One thing you may want to do when you're working on your form W4 is to use the IRS withholding calculator and this will give you a little bit more exact information that will help you to calculate your withholding allowances. So in the example we've got the calculator up and the purpose is to help employees to ensure that they do not have too much or too little income tax withheld from their pay and it's not a replacement for W4 but it's easier to use and it's more accurate. So tips for using the program, have some of your pay stubs handy. Have your most recent income tax form handy and any information that applies to your situation. And just work through here, you'll eventually print out the final screen and so we'll go ahead and go to continue to the withholding calculator and this is how it works. You just check what applies to you and just continue on and this will take you all the way through and we won't go through the whole form but this is what it looks like and based on the information you have, it'll continue on to result that will be as accurate as you can get with the information that you have."