If you had trouble using the IRS Tax Withholding Calculator last year, there’s good news for you.
Just in time for year-end tax planning, the IRS has unveiled a redesigned Tax Withholding Estimator that’s easier to use, mobile-friendly and can also help retirees with their tax planning.
Improvements made to the new estimator include enhanced tips and links to help the user quickly determine if they qualify for various tax credits and deductions. Retirees can get automatic calculations of the taxable portion of any Social Security benefits and calculate how much income tax they should withhold from pension payments. The estimator can also more effectively target at the time of filing either a tax due amount close to zero or a refund amount.
NTEU again encourages every member to do a “paycheck checkup” and review their withholding for 2019, especially if you’ve had an unexpected tax bill or a penalty last filing. It’s also important if you made withholding adjustments in 2018 or had a major life change. You may be at risk of having too little tax withheld if you previously itemized but now take the increased standard deduction, if you live in a two-earner household or have non-wage sources of income.
To use the estimator, you will need your most recent pay stubs and income tax return. The Tax Withholding Estimator does not ask for sensitive personally-identifiable information like your name, Social Security number, address or bank account numbers. The IRS does not save or record the information you enter on the Estimator.
Start crunching your numbers here.