If you have ever been hit with a large tax bill after filing your taxes, it could be because the withholdings your employer was taking out of your paycheck were incorrect.
When filing a Form W-4 with your employer, it is important to ensure the correct amount is being withheld from your paycheck.
A tool to help taxpayers determine the proper withholding is the IRS Tax Withholding Estimator. This tool lets taxpayers enter their income statements, earnings from various sources, and their most recent tax return to estimate how much withholding should be taken out of their paychecks.
The IRS advises taxpayers to use this tool once a year so they can stay on top of their withholding and adjust accordingly.
To read more about or use the IRS Tax Withholding Estimator, click here.
