The IRS has updated the Withholding Calculator on IRS.gov as well as the new version of Form W-4.
Using the calculator can help you avoid tax liability issues when you file next year. Keep in mind that recent tax law changes do not affect 2017 tax returns due this April. Having a completed 2017 tax return will help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018.
So, why would you want to use the new calculator?
According to the IRS, the average refund is a little over $2,800. If you prefer to have less tax withheld up front and receive more money in your paycheck, this calculator is just what you have been looking for.
Some people with simple tax situations may not need to make any changes. A simple tax situation would include singles and married couples with only one job, with no dependents, and who have not claimed itemized deductions, adjustments to income or tax credits.
The IRS recommends the following groups check their withholdings: