The Internal Revenue Service is alerting the small business and self-employed community about its recent launch of a new IRS Tax Withholding Estimator online tool. It replaces and expands the previous IRS Withholding Calculator.
The new tool offers a mobile-friendly, step-by-step way for employees, self-employed individuals, and retirees to tailor the amount of income tax withheld from their wages, self-employment income and pension payments. Other features include:
The ability to more effectively project either a tax due amount close to zero, or a refund amount during filing time.
Self-employment tax for individuals who have self-employment income in addition to wages or pensions.
A new progress tracker to help users see how much more information they need to input.
The ability to move back and forth through the steps, correct previous entries and skip questions that don’t apply.
Tips and links to help the user quickly determine if they qualify for various tax credits and deductions.
A mobile-friendly design.
The IRS continues to urge everyone to do a Paycheck Checkup and review their withholding for 2019. This is especially important for those who faced an unexpected tax bill or a penalty when they filed earlier this year.
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Schedule a ConsultationThis article is for general information only and is not tax or legal advice for your specific situation.