IRS WITHHOLDING CALCULATOR
October 25, 2020 - Douglas Myser
IRS withholding calculator. Most people are unaware of the IRS withholding calculator. We are often asked the question, am I withholding enough from my taxes to cover what I will owe ? This question comes up usually around tax filing season, but often throughout the tax year. Its important to understand that if you have a set paycheck, and are worried about whether you are withholding enough, then yes, its a good idea to check your withholding, usually at the beginning of the year. And since the tax laws have changed its probably a good idea for just about everyone to do this, because you need to recalculate your taxes anyway.
Its even more important for people with variable income, or those who are self employed to do this. If you are self employed, you need to not only keep track of your expenses, but you need to plan ahead of time, and that starts with determining, through the use of the IRS withholding calculator, whether you are holding enough back in taxes to pay Uncle Sam. If you don't do this ahead of time, you may find yourself needing tax work, due to poor planning.
When should this be done is another common question. The IRS always states that you should check your withholding early in the year to make sure you have enough tax withheld from your paycheck, or if your self employed, set the right amount aside to pay in your quarterly estimated tax payments. And with the Tax Cuts and Jobs Act, the new law increased the standard deduction, removed personal exemptions, increased child tax credits, limited and or discontinued certain deductions and changed certain tax rates. So it makes sense to try and figure out where you end up. The IRS withholding calculator is designed to do just that. One last thought, many people believe that the new tax law lowered tax rates for everyone, therefore its not necessary to do this. Wrong. We have found that some people's taxes have actually gone up, it depends upon the individual situation.
If you didn't check the withholding calculator and now owe the IRS back taxes, or a State Revenue Department, we can and will help. Our Tax Resolution is easy to go through. This Tax Resolution Company has been in continuous operation for 36 years. We are recommended by other National Tax Resolution Companies, who know our business practices. If you owe Payroll Taxes, we specialize in helping business owners with 940 941 tax debt. For individuals, our Tax Resolution Services include filing all past due tax returns, both IRS and State, then determining Tax Relief options in the Tax codes. If you live in the Wisconsin Milwaukee area, the Wisconsin Milwaukee IRS Fresh Start Program may be for you. Or we may want to explore the Offer in Compromise, or other options not found in those programs. We work very hard to prevent Bank Levies and an IRS Wage Garnishment from our clients lives. Call today for a confidential consultation. We operate in all 50 states and Internationally for Ex-Pats and Military. 1-888-689-7861