[US] IRS urges workers to check payroll information before next tax season

In the US, the Internal Revenue Service (IRS) is reminding workers to check their withholdings to determine whether too much or too little federal income tax is being withheld, stating that making those adjustments now can prevent smaller paychecks now or a higher bill at tax time, Advance Local reports.

Ordinarily, federal income tax is paid throughout the year as it is earned. Employers withhold federal income tax from each paycheck based on the employee’s earnings and information provided in the W-4 form. Withhold too much, and workers get a smaller paycheck but potential for a bigger refund at tax time. Withhold too little, and they could owe more in April.

The IRS reportedly encourages workers to check their withholdings periodically, particularly after a major life or income change or a change in tax law. Events with the potential to impact withholding include starting or leaving a job, working multiple jobs, marriage, divorce, the birth or adoption of a child, or a significant income change.

The IRS provides a free Withholding Estimator to help workers determine whether they are having too much or too little federal income tax withheld. The online tool uses information such as recent pay statements, income, deductions, and credits to estimate withholdings.

Where an adjustment is needed, workers can reportedly use the estimator results to help complete a new Form W-4 and submit it to their employer.

Source: Advance Local

(Link via original reporting)

In the US, the Internal Revenue Service (IRS) is reminding workers to check their withholdings to determine whether too much or too little federal income tax is being withheld, stating that making those adjustments now can prevent smaller paychecks now or a higher bill at tax time, Advance Local reports.

Ordinarily, federal income tax is paid throughout the year as it is earned. Employers withhold federal income tax from each paycheck based on the employee’s earnings and information provided in the W-4 form. Withhold too much, and workers get a smaller paycheck but potential for a bigger refund at tax time. Withhold too little, and they could owe more in April.

The IRS reportedly encourages workers to check their withholdings periodically, particularly after a major life or income change or a change in tax law. Events with the potential to impact withholding include starting or leaving a job, working multiple jobs, marriage, divorce, the birth or adoption of a child, or a significant income change.

The IRS provides a free Withholding Estimator to help workers determine whether they are having too much or too little federal income tax withheld. The online tool uses information such as recent pay statements, income, deductions, and credits to estimate withholdings.

Where an adjustment is needed, workers can reportedly use the estimator results to help complete a new Form W-4 and submit it to their employer.

Source: Advance Local

(Link via original reporting)