IRS Withholding Calculator - A Simple Tool
Filed Under IRS News, Tax Help & Assistance, Uncategorized | Leave a Comment
The IRS has introduced a calculator to help you make sure your employer deducts the right amount of withholding tax from your pay.
The IRS website says:
Purpose of This Computer Program The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. You may use the results of this program to help you complete a new Form W-4, which you will submit to your employer.
Tips For Using This Program
- Have your most recent pay stubs handy.
- Have your most recent income tax return handy.
- Fill in all information that applies to your situation.
- Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.
- Consult the information links embedded in the program whenever you have a question.
- Print out the final screen that summarizes your input and the results, then use it to complete a new Form W-4 (if necessary), and keep it for your records.
Who Can Benefit From This Application?
- Employees who would like to change their withholding to reduce their tax refund or their balance due;
- Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
- Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.
For Special Situations If your situation is among those listed below, you will probably achieve more accurate withholding by following the instructions in Publication 919, How Do I Adjust My Tax Withholding?
- If you will be subject to alternative minimum tax, self-employment tax, or other taxes; or
- If any of your current jobs will end before the end of the year.
NOTE: The information you provide is anonymous and will only be used for purposes of this calculation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.
To access the 2007 IRS Withholding Calculator, go to http://www.irs.gov/individuals/page/0,,id=14806,00.html
Identity Theft, Phishing, and Tax Scams
Filed Under Identity Theft, Tax Help & Assistance, Tax Scams | Leave a Comment
The IRS has been warning consumers about the fraudulent use of the IRS name and/or logo by scam artists and fraudsters. They do this to try to gain access to consumers’ financial data in order to steal their assets.
The “phishers” and fraudsters tend to use the IRS name because:
(a) most people recognize the IRS name,
(b) they have had prior communication with or from the IRS (such as receiving annual tax form and instruction packages) and
(c) they have previously provided the IRS financial data (such as that contained on tax returns).
Warning - Note the following:
1. As a general rule, the IRS does not send out unsolicited e-mails or ask for detailed personal information.
2. Additionally, the IRS does not ask people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts.
Identity Theft
The act of tricking people into disclosing their personal and financial data, such as secret access data or credit card or bank account numbers, is called identity theft.
Such schemes perpetrated through the Internet are called “phishing†for information (sounds like fishing).
The information fraudulently obtained is then used to steal the taxpayer’s identity and financial assets. Typically, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.
Identity theft usually causes immediate financial losses for the victims, who may also encounter lingering credit and other problems as a result of the identity theft.
Identity theft schemes take numerous forms. It may be conducted by:
(a) e-mail (phishing),
(b) standard mail, telephone or fax.
(c) Thieves may also go through trash looking for discarded tax returns, bank records, credit card receipts or other records that contain personal and financial information.
You can find out more about identity theft from the IRS at http://www.irs.gov
Go here for identity theft advice www.consumer.gov
Keep up to date on tax advice news www.taxassistonline.com
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