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W4 Payroll Checkup with the IRS Tax Withholding Estimator - YouTube
Channel: Yvette Knows Best - The IRS Problem Solver
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[Music]
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hi
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and welcome to this demonstration video
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on how to use the irs text withholding
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estimator
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which can be found at irs.gov w4
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app when the landing page opens
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you'll see the before you begin box that
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recommends
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you have your most recent pay stubs
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handy along with information
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for any other sources of income and your
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latest tax returns
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also ensure to use the whole dollar
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amounts in the estimator
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now let's get started by clicking the
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use the tax withholding estimator button
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here in the middle of the screen once
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the estimator screen displays
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you'll see you're on step one about you
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and at the top is a legend with five
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other steps before i get to see my
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results
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please note that any information entered
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in this video is made up
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and for demonstration purposes only
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please follow along
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using your own information depending on
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how you answer this tax estimator's
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questions
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will cause additional qualifying
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questions to appear below
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or on following screens also note that
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many of the questions are notated as
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required
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in red text and to the right of some
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questions
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is a help tip displayed as a question
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mark icon
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which provides additional information
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regarding that question
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to begin you'll want to select the
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filing status that you expect to use
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for the upcoming tax filing season for
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me i'm going to select
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married filing jointly
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you'll now notice that additional
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questions are displayed
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next i'll select if somebody else can
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claim me as a dependent on his or her
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tax return
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in my case i'll select no then scrolling
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down
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i'll need to select if i plan on
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claiming any other dependents on my tax
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return
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in this case i'm going to select yes and
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in the next field that's displayed
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i'm going to click the drop down and
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choose 2.
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the next question is based on income and
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asked if either i or my spouse will hold
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the job this year
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with paychecks that'll have federal tax
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regularly withheld
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again i'm going to select yes then it
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wants to know how many jobs we plan to
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hold
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throughout the year first for me i'll
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select one
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and for my spouse i'll also select one
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the next question asks if we'll receive
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a pension this year
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in my case i'm going to select no to
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this one
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in the fifth question it asks about
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additional sources of income and tax
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payments i expect to have throughout the
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year
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in my case i will select that my spouse
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will collect
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unemployment compensation and i'll
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select that i earned net income from
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self-employment
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please click on all the boxes that
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relates to your circumstance
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note selecting these options will make
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additional questions appear
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on following screens finally at the
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bottom for demographics
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select if you or your spouse will be 65
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or older or are blind
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in my case none of these relate so i'll
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just click on the next button
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here at the bottom left step two income
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and withholding
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the first section is about my job and
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asked if i expect to hold it for the
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entire year
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in my case i do expect to so i'll select
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yes
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then i need to answer how frequently i
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am paid
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on the drop down there's weekly every
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two weeks
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twice monthly or once a month i'll
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select every two weeks
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next wants to know what date did my most
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recent pay period
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end if i click in the field a calendar
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will display
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or i can enter in the date manually
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now you'll see additional questions have
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appeared so scrolling down
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next i'll enter the total wages that i
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expect to receive this year
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next i'm asked to enter any bonuses that
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i've received this year
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or that i expect to receive later on
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this year in my case i'm going to leave
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these blank
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however if you are expecting to receive
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a bonus later in the year
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and your employer does take out taxes
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from your bonuses
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you'll want to select this box here
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underneath
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next using my latest pay statement i'll
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need to enter my total federal taxes
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withheld to date and what my total
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federal tax withheld was
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in my recent pay statement
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finally wants to know if i contributed
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to a tax deferred retirement plan
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or an hsa or fsa or other pre-tax plan
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in my case i'll select no for both next
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i need to enter in my spouse's job
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information
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to do so click on the plus sign to the
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left
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to expand it as it did before it wants
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to know if my spouse will have held the
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job all year long
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in this case i'm going to select no then
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i'll enter the date range
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that my spouse either worked or will
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work throughout the year
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as before i'll enter in the frequency
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every two weeks and then i'll have to
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enter in estimated amounts
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until they actually begin their job
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again because of how i answered
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previously i need to enter in
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my spouse's total estimated unemployment
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compensation for the year
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then any estimated federal income tax
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withheld from unemployment
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then for myself my expected net
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self-employment income
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and any estimated federal income tax
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payments i've made
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toward my self-employment income now
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that i've completed all these entries
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i can click on the next button here at
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the bottom
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step 3 is about adjustments to income
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you can choose to see adjustments here
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to check if anything applies to you
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if it doesn't then simply go to the next
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step in my case i have no adjustments
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i'll simply click on go to next step and
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then click on the next button below
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which now takes me to step 4 deductions
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the description here notes that i
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qualify for the standard deduction
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based on my filing status most taxpayers
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take the standard deduction
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but if you'd like to itemize click on
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the itemized deductions
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and then fill up these fields if your
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itemized deductions are less than the
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standard deduction
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then the calculator will automatically
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use the standard deduction
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in your results in my case i'm just
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simply going to take
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the standard deduction and then click
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the next button to proceed to step 5.
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and in step 5 i can choose to see any
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tax credits here
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and then enter anything in that applies
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to me
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however if none of these credits apply
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to you then simply select
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get my results without tax credits and
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then click the next button
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on the results page the estimated
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overpayment shows the amount
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of my estimated refund assuming that
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nothing changes throughout the year
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however once my spouse begins their job
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i'll want to run this estimator again
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and enter in
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their actual amounts for pay and
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withholdings to get a more accurate
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result
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if you scroll down you'll see that
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there's a slider bar here in the middle
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of the screen
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if you want less of a refund at the end
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of the year
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or more of a refund at the end of the
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year you can slide the slider either to
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the left
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for less of a refund or to the right for
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more of a refund
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and then below will display what
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adjustments you should make to either
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your or your spouse's w-4
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by clicking on the plus sign on either
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one
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scrolling down to the bottom you'll find
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a detailed table
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with a summary of all your inputs and
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calculations
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you can expand or minimize any of these
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sections
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as you please you can also make edits to
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any of these sections
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if you scroll all the way to the bottom
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you can also go back
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start the form all over or you can print
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this page
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for a record of your inputs we highly
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recommend you check out the frequently
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asked questions for any questions and
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concerns
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regarding your results or withholding
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recommendations
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thanks for watching
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you
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