This estimator was created to make a simple and user-friendly way to check your withholding. If you receive wages or pension payments, it helps you determine if the right amount is being withheld from your income to cover your tax liability.
This tool has a format that uses six-step question and answer format to determine withholding status.
“The estimator has features specially tailored to the unique needs of retirees receiving pension payments and Social Security benefits”, states the IRS newsletter.
If you are retired, you can use the estimator to enter any pension income or Social Security benefits you or your spouse receives. Then the estimator tool will calculate the taxable portion and give you the overall estimate for the year. If you need to change your withholding, the estimator will give you steps on how to do so.
The estimator tool is easy to use on your cell phone, which is handy when you are on the go. It also gives you step by step instructions on how to use it and which information you need to enter.
Of course, the Golden Girls are always here to help you with your tax questions and to determine how much you need withheld for your taxes to avoid penalties. But with the new release of the tool, we wanted to keep all you tax payers out there up to speed, especially to help your friends and family who may be retired.
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