Tax Withholding

I often get phone calls from customers, asking me how much they should withhold on their W-4. Most often, I suggest using a Tax Estimator Tool provided by the website.

My customers cringe at the idea of having to pay additional tax when I’m preparing their tax returns. And when the question regarding tax withholding arises, I generally suggest the Tax Estimator. It’s a nifty little tool that can help you decide what to enter on your W-4 based on your individual circumstances.

The tool can be accessed by clicking the link above or by navigating to the website, entering “tax withholding estimator” within the search function and clicking on the link provided. Once you click on the link, the Estimator will ask a series of questions that will help you decide.

IMPORTANT NOTE: This Tax Withholding Estimator works for most taxpayers. People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax (PDF). This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.