To better address tax changes included in the Tax Cuts and Jobs Act, the IRS is in the process of revising its withholding forms and has launched a revised version of its estimated tax calculator.
Although the IRS had advised taxpayers to conduct a withholding checkup during the course of last year, working with the calculator was confusing and burdensome for many of those who even bothered to try it. And when they failed to adjust their withholding, numerous taxpayers were blindsided by unexpected tax bills and penalties.
The new estimated tax calculator, which includes many user-friendly features, also includes a tax withholding estimator designed to make it easier to enter data for each job held by an individual.