New IRS Tax Withholding Estimator September 2019 Tax News
The IRS encourages everyone to use the new 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. This new tool helps your clients tailor the amount of income tax their employer should withhold from their paychecks and avoid unexpected results at tax time. The Estimator helps you target a tax due amount close to zero or a refund around $500.
Tips for using the Withholding Estimator:
- Gather your clients’ most recent pay stubs and tax return.
- Use the links within the Estimator to see if they qualify for credits and deductions.
- Include other sources of income, like self-employment income and Social Security benefits.
- Revisit this tool if your clients’ circumstances change.
Time is right
Helping your clients with tax planning for the last few months of 2019? It’s especially important to use the estimator now:
- If they faced an unexpected tax bill or a penalty when they filed this year.
- If they made withholding adjustments in 2018.
- If they have or will experience a change in marital status, dependents, income or jobs this year.
- Because your clients can make estimated tax payments to the IRS instead of adjusting their withholding, and the next payment deadline is September 16.