The Internal Revenue Service (IRS)has recently sent an important message to millions of American taxpayers. The sooner they do something about this issue, the better. Because it can affect their tax liability in 2025.
What millions of taxpayers should do is an “end-of-summer” tax checkup. By doing so, you will prevent having an unpleasant tax surprise in 2025. Tax withholding should be a top priority for some Americans in the following situation. Payment updates are another thing to take into account in September.
Not all Americans get tax return checks from the IRS
Many taxpayers who have just started to work may not know the amount of tax they must pay to the IRS each year. Another group of American taxpayers who should be careful with their tax withholding and tax bills are those who experienced a life change.
- if you have experienced a recent job
- if you have experienced a change in income
- if you have just gotten married
- if you have just gotten divorced
- If you have just had a child
- if you have bought a home
Therefore, if you happen to be in this situation, you should try to check if your tax withholding is enough. Adjust it so that you do not need to pay a large bill to the Internal Revenue Service next April.
IRS also highlights these taxpayers
Apart from the aforementioned groups of people, you should also be careful if you are a gig economy worker, those with a “side hustle” and anyone earning income not subject to tax withholding.
The IRS says they should check the amount they pay on tax, or what is withheld over the year. Your goal should be to bring the tax you pay as close as possible to what you owe the IRS.
The best thing is to use the IRS tax withholding Estimator Tool: https://www.irs.gov/individuals/tax-withholding-estimator If you do that now, you will not be frustrated in April 2025 and you will save time too.