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Issue Number: IR-2023-205
Inside This Issue
Avoid a surprise next year; review tax withholding now before time runs out
IR-2023-205, Nov. 3, 2023
WASHINGTON — With 2023 rapidly coming to a close, the Internal Revenue Service today encouraged taxpayers to review their tax withholding as soon as possible to avoid a potential surprise when they file their tax return next year.
Although it’s best for taxpayers to verify withholding early in the year, an adjustment made in the final weeks of 2023 could still help to avoid an unexpected result, such as a big refund or a balance due, when filing taxes next year.
With only a few weeks left in the year, the IRS encouraged people who haven’t checked their withholding recently to do it soon so they can make any withholding adjustments needed. The IRS has several ways to help.
Tax Withholding Estimator
The tool offers workers, retirees, self-employed individuals and other taxpayers a simple-to-use, mobile-friendly way to calculate the correct amount of income tax they should have withheld from wages and pension payments based on their complete set of facts and circumstances.
Taxpayer options to pay as they go
The IRS reminds individuals earning income that’s not subject to withholding, such as income from rental properties, gig economy work or self-employment, to consider making quarterly estimated tax payments to avoid a balance due or penalties when filing.
Taxpayers may send estimated tax payments with Form 1040-ES by mail, or pay online, by phone or from their mobile device using the IRS2Go app. Taxpayers may also make estimated tax payments through their Online Account, where they can also see their payment histories and other tax records. To create an Online Account, go to IRS.gov/account.
Other items may affect 2023 taxes
The IRS reminds taxpayers that a refund is not guaranteed. Proper withholding adjustments help people boost take-home pay rather than be over-withheld and get it back as a tax refund.
If eligible, the fastest way to receive a tax refund is by filing electronically and choosing Direct Deposit. IRS issues most refunds within 21 days. While most are issued in 21 days or less from an error-free and paperless tax return, many take longer for different reasons.
For more information about estimated taxes and tax withholding, see Tax Withholding.
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