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Name: Alan Gregerson Date: October 25, 2019

Tax Withholding Estimator

New Tax Withholding Estimator’s Benefits

Expanded, mobile-friendly online tool

Easier for everyone to figure the right amount of tax to have withheld

Works for workers and retirees, and self-employed individuals with wage income on their return

New Tax Withholding Estimator

New user-friendly features: Plain language to improve comprehension

Ability to more effectively target a tax due amount close to zero or a refund amount

A progress tracker

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New Tax Withholding Estimator (cont’d)

Ability to move back and forth through the steps, correct previous entries, preview later info and skip questions that don’t apply

Enhanced tips and links to more info and eligibility requirements for certain tax credits, deductions, etc.

New Tax Withholding Estimator (cont’d)

Automatic calculation of self-employment tax, if applicable

Automatic calculation of the taxable portion of Social Security benefits

A mobile-friendly design

More Taxpayers Can Use the Estimator

The Tax Withholding Estimator provides more accurate estimates to taxpayers with: Self-employment income

(if they also have wages and/or pensions) Calculates self-employment

tax Alerts taxpayers about self-

employment-related adjustments

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More Taxpayers Can Use the Estimator (cont’d)

Social Security (SS) income Includes SS as a part of

total income Calculates the taxable

portion

Design Improvements

To make the tool more user-friendly, IRS made these improvements:

A consistent look and feel with IRS.gov, Online Account and applications

A helpful header to show phases

Design Improvements(cont’d)

In-browser tips with more information where users need it

A new clickable progress tracker

Alerts when a tax situation is rare, a taxpayer makes an error, or answers don’t align with previous entries; helps prevent errors

508 compliance to ensure accessibility for all users

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IRS.gov Home Page

Tax Withholding Estimator page

Tax Withholding Estimator page (scrolled down)

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Taxpayer Scenario

Married filing joint taxpayers

Spouse 1 is self-employed

Spouse 2 has wage income from an employer

Taxpayers have 3 children younger than 17

Claiming the standard deduction, not itemizing

Taxpayer Scenario (cont’d)

Spouse 2 is completing the estimator and to start with, uses an estimate for wage income.

Spouse 2 then finds their most recent paystub and they update the Tax Withholding Estimator with actual income and withholding information.

Tax Withholding Estimator – About You

Select filing status

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Tax Withholding Estimator – About You(cont’d)

Once you select a filing status, a drop-down will appear.

Select if someone else can claim you as a dependent.

Blue question marks provide additional information for taxpayers.

Tax Withholding Estimator –Helpful Hints

What you enter on each section determines what you’re asked on later pages.

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Select “Yes” to claim dependents and then a drop-down will appear for you to enter the number of dependents.

3 children from scenario

Tax Withholding Estimator –Dependents

After dependents, you will be asked about your income and jobs.

Tax Withholding Estimator –Income

Select the number of jobs you and your spouse expect to hold this year.

Tax Withholding Estimator – Jobs

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Once you enter the number of jobs, a drop-down will appear for pension.

Tax Withholding Estimator – Pension

Once you select an answer for pension, a drop-down will appear for other sources of income and demographics.

Tax Withholding Estimator –Other Income

You can now select net income from self-employment.

Tax Withholding Estimator –SE Income

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Tax Withholding Estimator –Demographics

Click next to complete the About You section. Section 2 of the Estimator is for Income & Withholding.

Note: You can go back and make changes at any point, if needed. Your answers stay in the estimator.

Tax Withholding Estimator –Income & Withholding

The progress tracker will stay at the top and show you what step you’re completing in the Estimator.

Enter the information about your job for the next drop-down to appear.

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As you answer each drop-down, the next one will appear.

Tax Withholding Estimator –Income & Withholding (cont’d)

A list of answers will appear when you click in the box.

Once you answer “On what date did your most recent pay period end?” the list of drop-downs will appear.

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Enter wage income and withholding

Then click the blue plus sign to see the drop-downs for self-employment

Enter self-employment income information

Enter self-employment income information

Click “Next” to move to the Adjustments section of the Estimator and click “Back” to make any changes to previous sections.

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Because the taxpayer marked self-employment income in step 2, the Estimator provides information in step 3 about related taxes and deductions.

Select “Go to next step” and click “Next” if you have no adjustments

Tax Withholding Estimator -Adjustments

Select “Take the standard deduction” and click “Next” to take the standard deduction

Tax Withholding Estimator -Deductions

Select “See tax credits” for a drop-down to appear

Tax Withholding Estimator –Tax Credits

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Select “Yes” for a drop-down with a list of tax credits to appear

Tax Withholding Estimator –Tax Credits (cont’d)

Click the blue plus sign next to the tax credits to get more information and see if you qualify

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3 children under 17

Scroll down and click “Next” at the bottom of the page to get Results

Tax Withholding Estimator -Results page

Tax Withholding Estimator - Results page (scrolled down)

This section confirms the date and information entered.

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Tax Withholding Estimator - Results page (cont’d)

Use the back button to edit previous entries

Tax Withholding Estimator –revising previous information

Click on any circle in the progress tracker to edit information you previously entered

Tax Withholding Estimator –Adjust Income and Withholding section

Select the Income & Withholding Section to adjust income

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Tax Withholding Estimator –Adjust Income and Withholding (cont’d)

Income changed from $90,000 as a placeholder estimate to actual income of $86,000 per year

Updated results page to reflect changes in income

How to adjust your results –Option 1

Choose 1 of the 2 options to adjust your results. Click on “Get My Balance Close to Zero” for next steps.

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How to adjust your results –Option 2

Choose 1 of the 2 options to adjust your results. Click on “I’d Like to Get a Refund” for next steps.

Thank You!

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