The Internal Revenue Service reminds taxpayers that reviewing tax withholding early can help avoid unnecessary surprises when filing your taxes. Making adjustments now can prevent the need for larger changes later in the year.
Use the IRS Tax Withholding Estimator
The IRS Tax Withholding Estimator is a free tool for workers, independent contractors, and retirees. It helps ensure the correct amount of federal income tax is withheld, which can prevent owing taxes and penalties and increase take-home pay.
When and Why to Use It
Use the Estimator once a year or after major life changes, such as: buying a home, changing jobs, having a child, or changing martial status.
Those who recently filed their 2024 tax return should also check withholding, especially if they have multiple income sources, including side jobs or sales reported on Form 1099-K.
What You Will Need
Gather the following before using the Estimator:
- All income statements (including spouse’s if filing jointly);
- Other income records;
- Your most recent tax return.
Need Assistance?
If you have questions or need help reviewing your withholding, please contact us. We are happy to assist you.
Source: https://www.irs.gov/newsroom/irs-encourages-taxpayers-to-check-withholding-now-for-next-year