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IRS launches new tax withholding estimator

The Internal Revenue Service recently launched the new “Tax Withholding Estimator,” an expanded, mobile-friendly online tool designed to make it easier for everyone to have the right amount of tax withheld during the year.

The new Tax Withholding Estimator offers workers, as well as retirees, self-employed individuals and other taxpayers, a step-by-step tool for effectively tailoring the amount of income tax they have withheld from wages and pension payments,.

Features include:

Plain language throughout the tool to improve comprehension.

The ability to more effectively target at the time of filing either a tax due amount close to zero or a refund amount.

A new progress tracker to help users see how much more information they need to input.

The ability to move back and forth through the steps, correct previous entries and skip questions that don’t apply.

Enhanced tips and links to help the user quickly determine if they qualify for various tax credits and deductions.

Self-employment tax for a user who has self-employment income in addition to wages or pensions.

Automatic calculation of the taxable portion of any Social Security benefits.

A mobile-friendly design.

See more at irs.gov

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