You should use the IRS Tax Withholding Estimator to check your withholding and make sure that your employers are taking out the right amount of tax from your paychecks. The money withheld from your paycheck throughout the year should cover the amount of tax that you owe. The estimator can be used by people workers, as well as retirees, self-employed individuals and other taxpayers.
Results include a recommendation of whether you should consider submitting a new Form W-4, Employee's Withholding Allowance Certificate to any of your employers.
These are the basic steps for using the IRS Tax Withholding Estimator:
Step 1: Gather your documents.
You should have a copy of your most recent pay stub (and for your spouse if married), any other sources of income, and your most recent tax return before you start. Go to the main Tax Withholding Estimator page on the IRS website, carefully read all of the information, then click the blue Tax Withholding Estimator button.
Step 2: Answer the questions.
You will then answer a series of questions about your specific tax situation. When you finish each section, click the blue "Next" button that takes you to the next section.
Step 3: Review the results.
The tool helps you target a tax due amount close to zero or a refund amount. Use the estimator's results to determine if you need to fill out a new Form W-4, which you will then submit to your employer, not to the IRS. Many employers have automated systems for submitting changes; check with yours to see if they have this option available to make it even easier!
People who receive pension income can use the results from the estimator to complete a Form W-4P and give it to their payer.
Resources:
How to Use the IRS Withholding Estimator for Paycheck Checkup - YouTube