Tax Tip 2022-85:Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4

IRS Tax Tips June 2, 2022
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:  Tax Tip 2022-85 Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4 The IRS encourages all taxpayers to review their federal withholding at least once a year to make sure they're not having too little or too much tax withheld. Taxpayers whose employers withhold federal income tax from their paycheck can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides recommendations to help aim for the withholding amount that's right for them. Taxpayers should check with their employer to update their withholding or submit a new Form W-4, Employee's Withholding Certificate. Adjustments to withholding Individuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don't make any changes, they will likely owe additional tax and possibly penalties when filing their tax return. Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction. Either way, those who need to adjust their withholding must submit the new W-4 information to their employer as soon as possible since withholding occurs throughout the year. Individuals who should check their withholding include those: who are working two or more jobs at the same time or who only work for part of the year who claim credits such as the child tax credit with dependents age 17 or older who itemized deductions on prior year returns with large tax refunds or large tax bills for the previous tax year Reasons to use the Tax Withholding Estimator The IRS Tax Withholding Estimator can help taxpayers: Estimate their federal income tax withholding See how their refund, take-home pay or tax due are affected by withholding amount Choose an estimated withholding amount that works for them Individuals who should not use the Tax Withholding Estimator are those: Who have a pension but not a job. Form W-4P, Withholding Certificate for Pension or Annuity Payments, should be used to estimate this tax withholding. Who have nonresident alien status. These individuals should use Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens. Whose tax situation is complex. This includes alternative minimum tax, long-term capital gains or qualified dividends. Taxpayers should prepare before using the Tax Withholding Estimator by having pay statements for all jobs, information for other income sources and their most recent income tax return. The tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers. More information: Publication 505, Tax Withholding and Estimated Tax Share this tip on social media -- #IRSTaxTip: Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4. https://go.usa.gov/xJYeC Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com. This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535