Checking your withholding just got easier. The IRS launched a new IRS Tax Withholding Estimator, which replaces the Withholding Calculator. It offers taxpayers a more user-friendly tool for tailoring the amount of income tax you have withheld from wages and pension payments. More people with certain tax situations can use this tool than before, such as retirees and self-employed individuals. The design offers new functions, is mobile-friendly and uses plain language throughout to improve ease of understanding.
The IRS urges taxpayers to check their withholding each year and adjust it, if needed, to avoid tax filing surprises. The new Tax Withholding Estimator will help anyone doing tax planning for the last few months of 2019. It’s especially important to use the estimator now:
- If you faced an unexpected tax bill or a penalty when they filed this year.
- If you made withholding adjustments in 2018.
- If you have or will experience a change in marital status, dependents, income or jobs this year.
- Because you can make estimated tax payments to the IRS instead of adjusting their withholding, and the next payment deadline is Sept. 16.
Tips for using the Withholding Estimator
- Gather your most recent pay stubs and tax return.
- Use the links within the Estimator to see if you qualify for credits and deductions.
- Include other sources of income, like self-employment income and Social Security benefits.
- Revisit this tool if your circumstances change.
Questions? For more information, please contact us at 401-831-0200.