Friday, August 9, 2019

Tax tips for summertime employment

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.

IRS launches new Tax Withholding Estimator online tool

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.
The IRS continues to urge everyone to do a Paycheck Checkup and review their withholding for 2019. This is especially important for those who faced an unexpected tax bill or a penalty when they filed earlier this year. 
For more information, see: IRS launches new Tax Withholding Estimator; Redesigned online tool makes it easier to do a paycheck checkup.