The IRS is reminding taxpayers that proper tax withholding now is key to avoiding surprises when they file their tax return next year.
Making any needed adjustments earlier in the year means taxpayers won’t have to make a big change later in the year to catch up.
The IRS Tax Withholding Estimator is a free online tool that helps workers, independent contractors and retirees determine if they are having the right amount of federal income tax withheld from their paychecks.
By using this tool once a year, taxpayers can manage their estimates based on any personal life change, such as buying a home, changing jobs, having a child or changing their marital status.