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New online tax withholding estimator launched

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Tax Hot Topics newsletterThe IRS launched a new Tax Withholding Estimator on Aug. 6 for workers, retirees, self-employed individuals and other taxpayers to use in determining their tax withholding. The new tool replaces the Withholding Calculator previously offered on the IRS’s website and offers more user- and mobile-friendly features, including the following:

  • Simpler instructions with a progress tracker indicating how much more information the taxpayer needs to input
  • Enhanced tips and links for determining user eligibility for various tax credits and deductions
  • Automatic calculation of the taxable portion of Social Security benefits
  • Calculation of self-employment tax for individuals with both self-employment income and wages or pension income
  • Specific withholding recommendations for each job and each spouse

The IRS encourages all taxpayers to use the Tax Withholding Estimator to avoid having too little tax withheld, especially for individuals who have itemized in the past but now take the increased standard deduction, two-wage-earner households, employees with nonwage sources of income, and those with complex tax situations.

Contacts:
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107

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