The estimator works best if you have information on hand like your latest paystub and your spouse's similar information, if applicable. You will also need to be able to estimate unearned income, adjustments, deductions if you itemize, and the amount of tax credits you will receive.
The estimator also now helps estimate self-employment tax for those who are self-employed.
If you use the tracker it provides a summary at the end of how much you will either owe or be refunded. Here is an example populated from entering random data:
Be careful with this new Form W-4. This form is prepared to adjust your withholdings for the remainder of the current year. You will likely want different withholdings for the full 2021 year so you will most likely need to prepare a new form in January.
If your tax situation is not straight-forward you may want to have your accountant do a more thorough tax planning scenario for you. We are always happy to connect and do tax planning to get an idea of how your taxes will look in April and help to adjust your withholdings or estimates while you still have time to make changes.
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