The IRS income calculator is a great tool that families, and businesses can use to calculate how much tax they will owe the IRS. The IRS is urging two income families and those who work multiple jobs to complete a “paycheck checkup” to verify that they are having the right amount of tax withheld from their paycheck every month. The IRS income calculator can help them navigate the difficulties of having more than one emplyer and determine the corrent amount of tax for the upcoming tax year, so they don’t fall behind and owe the IRS.
The Tax Cuts and Jobs Act, which will impact 2018 tax returns that people file in 2018, makes checking withholding amounts even more important. The changes included in the new law are, increased standard deductions, eliminating personal exemptions, increased child tax credits, limited or disconinued certain deductions, and changed tax rates and brackets.
The income calculator can even help individuals with more complex tax returns to complete a tax profile, amking sure they don’t under withhold with the new tax brackets. We have seen some individuals who thought they were getting a tax break under the new law, actually end up with a tax increase. Until you file your return, you cannot be sure.
The income calculator is the easiest, most accurate way for taxpayers with these complicated tax situations to determine their correct withholding amount. The tool allows users to enter income from multiple jobs or from two employed spouses. It also ensures that these taxpayers apply their 2018 tax deductions, adjustments and credits only once-rather than multiple times with different employers.
calculator will recommend how to complete a new Form W-4 for any or all of their employers, if needed. If a couple or taxpayer is at risk of being under withhled, the calculator will recommend an additional amount of tax withholding for each job. Taxpyaers can enter these amounts on their respective Forms W-4. To use the Withholding Calculator, taxpayers should have theri 2017 tax returns and most recent paystubs available.