The tax agency is advising people to use the IRS Tax Withholding Estimator to ensure they are withholding the correct amount of tax from their pay in 2024.
Using the estimator to make sure you’re having the right amount withheld from your pay can help “taxpayers avoid unwanted results if the refund for their 2023 return was too large, too small or if they received a surprise tax amount due,” the IRS said in a statement.
Taxpayers are advised to review withholdings at least once a year. It’s also wise to check withholdings after significant life events like marriage, divorce, buying a home or having a child. All forms of income should be factored in, including part-time or side jobs or the sale of goods and services that will be reported on Form 1099-K.
What do you need to do:
To help prepare, the IRS recommends taxpayers gather:
- Most recent pay statements, and if married, for your spouse,
- Information for other sources of income, and
- Most recent income tax return in 2023, if possible.