Getting ready to file your 2019 taxes (1/4)

Number 1: Adjust your withholding or make a tax payment

(This is the first in a series of posts that will help you get ready to file your 2019 taxes)

If you received a smaller refund than expected or owed an unanticipated tax bill this year, consider adjusting your withholding to help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. Or, you may prefer less tax withheld up front and receive more in your paycheck.

Take these actions to get ready for next year:

Use the Tax Withholding Estimator to help make sure you have the right amount of tax withheld from your paycheck, pension or other income.

Submit a new  Form W-4, Employee's Withholding Allowance Certificate to your employer to change withholding. If you receive pension or annuity income, you can use the results from the estimator to complete a Form W-4P, Withholding Certificate for Pension or Annuity Payments and give it to your payer. Some taxable income is not subject to withholding including self-employment and gig economy income.  People with this income who also have income from a job may want to adjust the amount of tax your employer withholds from your paycheck.

Make estimated or additional tax payments now if the tax withheld from your salary, pension or other income doesn’t cover the 2019 income tax that you’ll owe for the year.  Form 1040-ES, Estimated Tax for Individuals also has a worksheet to help you figure your estimated payments. Visit IRS.gov/payments to explore payment options.  

More information from the IRS here