IR-2015-120: Tax Preparedness Series: Employees Should Take Time to Check Withholding
Internal Revenue Service (IRS) sent this bulletin at 10/22/2015 11:10 AM EDT
|
News EssentialsThe Newsroom TopicsIRS Resources |
Issue Number: IR-2015-120Inside This IssueTax Preparedness Series: Employees Should Take Time to Check Withholding
IRS YouTube Videos: IRS Withholding Calculator – English | Spanish | ASL IRS Podcasts: IRS Withholding Calculator – English | Spanish
WASHINGTON — TheInternal Revenue Service reminds taxpayers that the earlier in the year they check their withholding, the easier it will be to get the right amount of tax withheld. Besides wages, income tax is often withheld from other types of income, such as pensions, bonuses, commissions and gambling winnings. Ideally, taxpayers should try to match their withholding with their actual tax liability. If not enough tax is withheld, they will owe tax at the end of the year and may have to pay interest and a penalty. If too much tax is withheld, they will lose the use of that money until they get their refund. This is the first in a series of weekly tax preparedness releases designed to help taxpayers begin planning to file their 2015 return.
When Should Taxpayers Check their Withholding?
Use the IRS Withholding Calculatoron IRS.gov. This easy-to-use tool can help figure the taxpayer’s federal income tax withholding so their employer can withhold the correct amount from their pay. This is particularly helpful if they've had too much or too little withheld in the past, their situation has changed, or they started a new job. Taxpayers may also use the worksheets and tables in Pub 505: TaxWithholding and Estimated Tax, to see if they are having the right amount of tax withheld.
How to Change the Amount being withheld
Events during the year may change a taxpayer’s marital status or the exemptions, adjustments, deductions, or credits they expect to claim on their return. When this happens, taxpayers may need to give their employer a new Form W-4, Employee's Withholding Allowance Certificate to change their withholding status or number of allowances.
Generally, taxpayers should give their employer a new Form W–4 within 10 days after either:
Other Considerations
Find more information on this and other tax topics by visiting: www.irs.gov/Individuals.
Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |