TaxBandits Knowledge Base

How to calculate your withholding for Form W-4?

You can calculate your withholding in two ways. One is through the Tax Withholding Estimator at www.irs.gov/W4app and the other is by using the Multiple Jobs Worksheet found on Page 3 of your Form W-4. 

When to use Tax Withholding Estimator App?

If you want to calculate your withholding with maximum accuracy and privacy, you can opt to use this IRS tax estimator app www.irs.gov/W4app. You will generally be guided to enter an additional amount to withhold in Step 4(c).   

While you will need to know the approximate amount of pay for each job, you will enter the additional amount of withholding in Step 4(c) on the Form W-4 for only one of the jobs. If you pay for any of the jobs changes significantly, you will need to use the Tax Withholding Estimator again and furnish a new Form W-4 to change the amount in Step 4(c) to have accurate withholding.

When to use Multiple Jobs Worksheet?

If you do not have access to the Tax Withholding Estimator but wish to have roughly accurate withholding and retain privacy, you can opt to the Multiple Jobs Worksheet. You will be guided to enter an additional amount to withhold in Step 4(c).  

While you will need to know the approximate amount of pay for each job, you will enter the additional amount of withholding in Step 4(c) on the Form W-4 for only one of the jobs. If a change in pay for any of the jobs changes the additional withholding amount in the lookup table used with this worksheet, you will need to furnish a new Form W-4 to change the amount in Step 4(c) to have accurate withholding. If you (and your spouse) have a total of only two jobs and the pay at the higher paying job is more than double the pay at the lower-paying job, this option is generally more accurate than choosing Step 2(c). If the pay at each job is more similar, choosing Step 2(c) is more accurate than choosing Step 2(b).