--- title: IRS Introduces New Tax Withholding Estimator description: A new Tax Withholding Estimator makes it easier for taxpayers to determine how much they should withhold for taxes from their paychecks. image: https://go.hfcu.org/hubfs/IRS-withholding-form_webopt.jpg --- [![MoneyWisdom_HFCU_r2](https://go.hfcu.org/hs-fs/hubfs/MoneyWisdom_HFCU_r2.png?width=464&name=MoneyWisdom_HFCU_r2.png "MoneyWisdom_HFCU_r2")](https://go.hfcu.org/blog) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) - [Auto](https://go.hfcu.org/blog/topic/auto) - [Business](https://go.hfcu.org/blog/topic/business) - [Credit Score](https://go.hfcu.org/blog/topic/credit-score) - [Home](https://go.hfcu.org/blog/topic/home) - [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards) - [Life Changes](https://go.hfcu.org/blog/topic/life-changes) - [Insurance](https://go.hfcu.org/blog/topic/insurance) - 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[Pets (1)](https://go.hfcu.org/blog/topic/pets) - [dormant account (1)](https://go.hfcu.org/blog/topic/dormant-account) - [inactive account (1)](https://go.hfcu.org/blog/topic/inactive-account) # IRS Introduces New Tax Withholding Estimator ** [Hanscom Federal Credit Union](https://go.hfcu.org/blog/author/hanscom-federal-credit-union) ** Aug 09, 2019 ![IRS Withholding Form W-4](https://go.hfcu.org/hubfs/IRS-withholding-form_webopt.jpg) Earlier this week the Internal Revenue Service introduced its new [Tax Withholding Estimator](https://www.irs.gov/individuals/irs-tax-withholding-estimator), a mobile-friendly online tool that will help taxpayers determine the right amount of tax they should withhold each year. This new tool replaces the IRS's old withholding calculator, which was targeted specifically to workers whose wages are reported on Form W-2 . The new [Tax Withholding Estimator](https://www.irs.gov/individuals/irs-tax-withholding-estimator) also lets self-employed workers, retirees, and other taxpayers figure out the right amount of tax withholding based on their wages and/or pension payments. It can be frustrating when you realize you've overpaid your taxes during the year. [The IRS says their average refund to taxpayers tops $2,800](https://www.irs.gov/newsroom/irs-tells-taxpayers-who-got-a-big-refund-to-do-a-paycheck-checkup)...that's cash you could have used during the year or put aside in savings.  Even more dismaying is when you go to do your taxes and realize you haven't withheld enough money from your paycheck for Uncle Sam. Not only will you have to pay up, but you may be faced with a penalty! [The Estimator](https://www.irs.gov/individuals/irs-tax-withholding-estimator) can prevent either scenario from happening. The results from the online tool can be entered onto a [W-4 (Employee's Withholding Allowance Certificate)](https://www.irs.gov/pub/irs-pdf/fw4.pdf) or a [W-4P](https://www.irs.gov/pub/irs-pdf/fw4p.pdf) if you receive pension or annuity income. Self-employed workers can adjust their quarterly tax payments accordingly based on the results and pay on the [1040-ES](https://www.irs.gov/pub/irs-pdf/f1040es.pdf). Here's what you'll need to get the most accurate estimate from the Estimator: - Recent pay stubs - Your most recently filed 1040 to help you estimate 2019 income/characteristics - Notes about any circumstances that have changed in your life (number of children, marital status, employment, etc.) [The Estimator](https://www.irs.gov/individuals/irs-tax-withholding-estimator) will ask you to estimate what your 2019 income will be, the number of children you'll be claiming for the Child Tax Credit and Earned Income Tax Credit, and several other items that affect tax withholding. It should take just a few minutes. If the result you gets shows a figure that's different from what you're already withholding, make sure you fill out a new W-4 with your employer as soon as possible. The longer you wait, the more (or less) will be withheld than you want. The IRS also has a special note for 2020: They urge taxpayers to recheck their withholding at the beginning of 2020, especially if they've reduced their withholding sometime during 2019. This is because a mid-year change in withholding can have a full-year impact the following year. If a taxpayer does not file a new W-4 for 2020, their withholding might be higher or lower than they intended. So if you want to avoid having too little withheld and paying a steep price for it in April 2021, it will pay to re-check your withholding at the start of 2020. The IRS recommends that taxpayers who have more complex tax situations use the instructions in [Publication 505: Tax Withholding and Estimated Tax](https://www.irs.gov/pub/irs-pdf/p505.pdf) to determine the correct withholding. These taxpayers include those who owe alternative minimum tax or certain other taxes, and/or those with long-term capital gains or qualified dividends. [![Schedule a free consultation with Hanscom Investment Services](https://no-cache.hubspot.com/cta/default/118438/92c28789-cb49-49a6-ab5d-00afcbfacbd5.png)](https://cta-redirect.hubspot.com/cta/redirect/118438/92c28789-cb49-49a6-ab5d-00afcbfacbd5) *Others are reading* - *[10 Smart Moves After Filing Your Taxes](https://go.hfcu.org/blog/10-smart-moves-to-make-after-filing-your-taxes)* - *[Where to Do Your Tax-Free Shopping This August](https://go.hfcu.org/blog/where-to-do-tax-free-shopping-this-august)* - *[Scam Alert: Beware the Fake IRS Refund Check](https://go.hfcu.org/blog/tax-scam)* - *[Scam Alert: Things the IRS Will Never Do](https://go.hfcu.org/blog/scam-alert-things-the-irs-will-never-do)* - *[How Changing Your Name Affects Your Tax Filing](https://go.hfcu.org/blog/changing-your-name-and-taxes-what-you-need-to-know)* ** [Business](https://go.hfcu.org/blog/topic/business), [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) [** How Your Credit Report Can Keep You From Getting Hired ](https://go.hfcu.org/blog/what-employers-look-for-on-your-credit-report) [** 8 Steps for Protecting Your Child from Identity Theft ](https://go.hfcu.org/blog/8-steps-for-protecting-your-child-from-identity-theft) ### About Author ![Hanscom Federal Credit Union](https://go.hfcu.org/hubfs/HFCU-Profile-1000x1000.jpg) Hanscom Federal Credit Union Hanscom Federal Credit Union, a purpose-driven $1.9 billion organization based in Littleton, MA, empowers its members to achieve financial wellness. Hanscom FCU serves over 95,000 members across the country and overseas through 16 branches, over 100,000 surcharge-free ATMs, 5,000 contact centers, and a web-based branch. 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The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.linkedin.com/company/hanscomfcu/ The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. 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The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ### Popular Posts [What You Need to Know About Putting Your Home in a Trust](https://go.hfcu.org/blog/what-you-need-to-know-about-putting-your-home-in-a-trust) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202022-02-10T072804.753.jpg) [What You Need to Know About Your Federal Tax Bracket](https://go.hfcu.org/blog/what-you-need-to-know-about-your-tax-bracket) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202021-03-22T123305.900.jpg) [6 Boat Types to Get on the Water](https://go.hfcu.org/blog/6-boat-types-to-get-on-the-water) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/Jet_Ski.jpg) [23 Organizations Dedicated to the Needs of Seniors](https://go.hfcu.org/blog/23-organizations-dedicated-to-the-needs-of-seniors) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Senior%20citizens.jpg) [9 Smart Moves for Lottery Winners](https://go.hfcu.org/blog/lottery) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/lottery_winner.jpg) ### Recent Posts - [![National Credit Union Administration](https://go.hfcu.org/hs-fs/hubfs/NCUA-logo-small.png?width=95&name=NCUA-logo-small.png) ](https://www.ncua.gov/) [![Equal Housing Lender](https://go.hfcu.org/hs-fs/hubfs/EHL-logo-small.png?width=65&name=EHL-logo-small.png)](https://www.hud.gov/fairhousing) - @ 2023 [Hanscom Federal Credit Union](https://www.hfcu.org/) - Federally insured by the National Credit Union Administration. - [Privacy Policy](https://www.hfcu.org/content/docs/Privacy_Notice.pdf) **Disclosure:** Hanscom Federal Credit Union does not provide and is not responsible for any products, services, or overall website content available at any third-party sites linked within this blog. 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Please consult the privacy disclosures on those linked sites for further information. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Hanscom Federal Credit Union" }, "dateModified" : "February 18, 2020, 2:54:00 PM", "datePublished" : "2019-08-09 11:54:00", "description" : "A new Tax Withholding Estimator makes it easier for taxpayers to determine how much they should withhold for taxes from their paychecks.", "headline" : "IRS Introduces New Tax Withholding Estimator", "image" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/IRS-withholding-form_webopt.jpg" }, "mainEntityOfPage" : { "@id" : "https://go.hfcu.org/blog/irs-introduces-new-tax-withholding-estimator", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/Logo%202.jpg" }, "name" : "Hanscom Federal Credit Union" } } ```