IRS helps taxpayers with new tax withholding estimator

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Posted at 6:32 PM, Aug 14, 2019
and last updated 2019-08-14 19:32:21-04

CORPUS CHRISTI, Texas — The Internal Revenue Service has launched a new app they say will make tax filing less stressful.

It’s a tax withholding estimatorthat will help you calculate your tax return.

In 2018, the Tax Cuts and Jobs Act became law. It reduced income tax rates for most individuals and corporations. But it also eliminated many deductions taxpayers had gotten used to that led to some big surprises at tax time.

To eliminate the uncertainty, the IRS has created a tax withholding estimator, helping taxpayers figure out how much money they will receive or owe come tax time.

“It's an easy to use app, if you'll have the data there,” local tax expert Bill Clark said. “But of course, it's one of those things, garbage in, garbage out. If you don't put in the right data then it's not going to give you the right information that you're looking for."

The app allows you to change your withholding status if you're interested in paying more taxes during the year with a larger tax return, or vice versa.

"You don't report these things correctly, you can run into some problems at the end of the year because not enough is being withheld, or way too much is being withheld based upon the income,” Clark said.

This app helps avoid that confusion by allowing you to see what can and can't be deducted.

For taxpayers and their spouses, the tax withholding estimator, makes it easy for people to enter in their wages and withholdings for each job.

And for those who were hit with an unexpected tax bill this past year, this app will help make sure the right amount of taxes are being deducted.

"Go to the website, load this app down and go through the process of filling it out,” Clark said. “I think it'll be an eye opener for a lot of people."

The app is user-friendly and only takes minutes to fill out.