Checking your withholding just got easier. The IRS launched a new IRS Tax Withholding Estimator. As part of a continuing effort to improve quality services for taxpayers, the IRS upgraded this tool, which replaces the Withholding Calculator, and gave it a facelift.
More than just a name change
The Tax Withholding Estimator offers taxpayers a more user-friendly, step-by-step tool for tailoring the amount of income tax they 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 newly designed, mobile-friendly tool has plain language throughout to improve comprehension, and several new functions. You can learn more about key improvements in the attached materials.
Time is right
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 a taxpayer faced an unexpected tax bill or a penalty when they filed this year.
- • If a taxpayer made withholding adjustments in 2018.
- • If a taxpayer has or will experience a change in marital status, dependents, income or jobs this year.
- • Because taxpayers can make estimated tax payments to the IRS instead of adjusting their withholding, and the next payment deadline is Sept. 16.