|The IRS urged taxpayers to use the IRS Tax Withholding Estimator Tool (the tool) to ensure they are having the right amount of tax withheld from their pay during 2022. The tool offers workers, self-employed individuals and retirees who have wage income a user-friendly resource for effectively tailoring the amount of income tax withheld from wages. Taxpayers can use the results from the tool to determine if they should complete a new Form W-4, Employee’s Withholding Certificate, and submit it to their employer. Checking withholding tax can:
|Ensure the right amount of tax is withheld and prevent an unexpected tax bill or penalty at tax time.
|Determine whether to have less tax withheld up front, thereby boosting take-home pay and reducing any refund at tax time.
|Further, the IRS recommended checking withholding at least once a year. For taxpayers who have just finished filling out their 2021 returns, now is a good time to do it. Taxpayers can also use the tool right after a major life change including marriage, divorce or the birth of a child. Additionally, IRS recommends that taxpayers gather their most recent pay statements, information from other sources of income, and their most recent income tax return to help prepare the tool’s results accurately.
|The IRS urged taxpayers still working on their 2021 returns to ensure they have all their year-end statements in hand before filing. This includes Letter 6419, 2021 Total Advance Child Tax Credit (AdvCTC) Payments, and Letter 6475, Economic Impact Payment (EIP) 3 End of Year. Alternatively, taxpayers can also check their Online Account to access information on their AdvCTC payments and EIPs. Taxpayers should e-file and choose direct deposit to help with faster delivery of refunds. Finally, the IRS reminded taxpayers that for most taxpayers the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19. Taxpayers who live and work abroad have until June 15. Those who need more time to file can get an automatic extension to file until October 17, 2022. (IR‑2022‑81, April 13, 2022).