It’s a Good Time to Check Withholding for the Year
Now that the last quarter of 2021 is here, the IRS is reminding taxpayers that it’s a good time to check withholding from your wages or compensation. Life changes might have occurred in 2021 that can affect your taxes. Examples include: COVID-19 relief you may have received; disaster relief, such as for a wildfire or hurricane; job loss; possible gig economy income; marriage; and a new baby.
If too little is withheld, you could incur penalties at tax-filing time. (You may have to increase withholding or make quarterly estimated tax payments to the IRS.) Or, if too much is being withheld from your paychecks, you might be able to put more cash in your pocket now with a simple change. Use the IRS Tax Withholding Estimator tool in this link to determine if you need to make a change or contact us with questions. Click here for more from the IRS.