{"id":31480,"date":"2023-11-17T08:00:00","date_gmt":"2023-11-17T14:00:00","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=31480"},"modified":"2023-11-17T09:24:43","modified_gmt":"2023-11-17T15:24:43","slug":"employees-should-review-tax-withholding-by-dec-31","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/employees-should-review-tax-withholding-by-dec-31\/","title":{"rendered":"Employees: Review tax withholding by Dec. 31"},"content":{"rendered":"\n

With 2023 rapidly coming to a close, the IRS is encouraging taxpayers to review their tax withholding as soon as possible to avoid a potential surprise when they file their tax return next year.<\/p>\n\n\n\n

Although it\u2019s best for taxpayers to verify withholding early in the year, an adjustment made in the final weeks of 2023 could still help to avoid an unexpected result, such as a big refund or a balance due, when filing taxes next year.<\/p>\n\n\n\n

With only a few weeks left in the year, the IRS encouraged people who haven\u2019t checked their withholding recently to do it soon so they can make any withholding adjustments needed. As a tax planner and preparer, here’s what you need to know; pass these tips along to your clients.<\/p>\n\n\n\n

Tax Withholding Estimator<\/strong><\/p>\n\n\n\n

The\u00a0Tax Withholding Estimator<\/a>, also available in Spanish, can help taxpayers determine if they have too much income tax withheld and how to adjust tax withholding. In other cases, it can help taxpayers see that they should withhold more or make an\u00a0estimated tax payment<\/a>\u00a0to avoid a tax bill when they file their 2023 tax return. The tool offers workers, retirees, self-employed individuals, and other taxpayers a simple-to-use, mobile-friendly way to calculate the correct amount of income tax they should have withheld from wages and pension payments based on their complete set of facts and circumstances.<\/p>\n\n\n\n

Taxpayer options to pay as they go<\/strong><\/p>\n\n\n\n

Taxes are generally\u00a0paid throughout the year<\/a>. Employers typically withhold income tax from their employees’ salary and pay it to the IRS on the employee\u2019s behalf. However, about 70% of taxpayers withhold too much every year resulting in a refund.<\/p>\n\n\n\n

The IRS reminds individuals earning income that is not subject to withholding, such as income from rental properties,\u00a0gig economy work<\/a>\u00a0or\u00a0self-employment, to consider making quarterly estimated tax payments to avoid a balance due or penalties when filing.<\/p>\n\n\n\n

Taxpayers may send estimated tax payments with\u00a0Form 1040-ES<\/a>\u00a0by\u00a0mail<\/a>, or\u00a0pay online<\/a>, by phone, or from their mobile device using the\u00a0IRS2Go app<\/a>. Taxpayers may also make estimated tax payments through their Online Account, where they can also see their payment histories and other tax records. Create an Online Account here<\/a>.<\/p>\n\n\n\n

Other items may affect 2023 taxes<\/strong><\/p>\n\n\n\n

Common and unforeseen life events<\/a> can be a trigger to make withholding adjustments. These include:<\/p>\n\n\n\n