An advice that the IRS is giving is to check your federal tax withholding, which you can do through the Tax Withholding Estimator on IRS.gov, which is in Spanish.
This online tool helps you as an employee avoid having too much or too little tax withheld from your pay. It also helps self-employed workers who have earned income estimate the tax payments they need to make to avoid unexpected results when filing taxes.
Having too little tax withheld can result in an IRS bill or even a fine at tax time. On the other hand, having too much tax withheld results in less money in your pocket. The estimator can help you get to a zero balance or whatever refund amount you want.
The Withholding Tax Estimator asks you to calculate:
–Your income from 1099
–The number of children you will claim for the Child Tax Credit and the Earned Income Tax Credit
–Other elements that will affect your tax return for 2022 when they file their return in 2023
The Withholding Tax Estimator does not ask for personally identifiable information, such as name, Social Security number, address, and bank account numbers. Please note that the information entered into the Estimator is not saved or recorded by the IRS.
Before using the Estimator, it may be helpful to gather the income documents you will need, including:
–Your payment receipts
–Forms W-2(SP) from employers to estimate annual income
–Forms 1099 from banks, issuing agencies and other payers, including unemployment compensation, dividends, distributions from a pension, annuity, or retirement plan
–Form 1099-K, 1099-MISC, W-2 or other declaration of income for workers in the shared economy
–Form 1099 -INT interest received
–Other revenue documents and virtual currency transaction records
These documents are not necessary to use the tool of the Estimator, but having them on hand will help you estimate the income of 2022 and answer other questions that are asked during the process.
You may also be interested in:
– IRS recommends paying taxes before 18 April to avoid penalties and interest
– The best age to start collect Social Security payments