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.
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.
