Friday, August 9, 2019
Summertime workers often qualify for tax credits or deductions. Taxpayers working summer jobs should file a return regardless of whether they earn enough to owe federal income tax. Filing a return provides a refund for taxes withheld when they file next year.
For more information, see: Have a sunnier tax season with these summertime IRS tax tips.
The Internal Revenue Service is alerting the small business and self-employed community about its recent launch of a new IRS Tax Withholding Estimator online tool. It replaces and expands the previous IRS Withholding Calculator.
The new tool offers a mobile-friendly, step-by-step way for employees, self-employed individuals, and retirees to tailor the amount of income tax withheld from their wages, self-employment income and pension payments. Other features include:
- The ability to more effectively project either a tax due amount close to zero, or a refund amount during filing time.
- Self-employment tax for individuals who have self-employment income in addition to wages or pensions.
- A new progress tracker to help users see how much more information they need to input.
- The ability to move back and forth through the steps, correct previous entries and skip questions that don’t apply.
- Tips and links to help the user quickly determine if they qualify for various tax credits and deductions.
- A mobile-friendly design.
For more information, see: IRS launches new Tax Withholding Estimator; Redesigned online tool makes it easier to do a paycheck checkup.