Withholding Calculator | Nesteggg Accounting

Understanding the New W-4

If you have employees in your business you may know the Internal Revenue Service has revised Form W-4 and is offering answers and guidance online.

New W-4 Form and explanations offered online

If you do your own payroll inhouse the Income Tax Withholding Assistant for Employers can help guide you around the new changes. The redesigned withholding system (no longer based on withholding allowances) went into effect on Jan. 1.
There is even a webinar, Understanding the 2020 Form W-4 and How to Use it to Calculate Withholding posted on the site.
And a new and improved Tax Withholding Estimator that incorporates the changes from the redesigned Form W-4, Employee’s Withholding Certificate, that you can direct your employees to for guidance on how to fill out the new form.

While the IRS does not require a new W-4 Form for all current employees, (employers can continue to use the latest W-4 on file for their workers) it may help employees to understand their withholdings better.

Improved tool on IRS.gov helps taxpayers check their withholding

All employees should make sure their employers are withholding the correct amount of tax from their paychecks. The best way for employees to do this is to use the new IRS Tax Withholding Estimator on IRS.gov.

The IRS just launched this improved tool to help taxpayers check their withholding by doing a Paycheck Checkup. This lets the employee check to see if their employer is taking enough tax from their paycheck to cover the amount of tax they owe. After using the Estimator, if necessary the employee can change the amount of tax their employer takes out of their paycheck. This will help employees avoid an unexpected result at tax time, such as a smaller refund.

After using the new mobile-friendly tool, some taxpayers may find they need to pay more taxes before filing their tax returns in 2020. These folks have a few options for doing so. Here are three ways taxpayers can adjust their withholding:

Change the withholding allowances on Form W-4.
When an employee reduces the number of allowances on their Form W-4, they increase the amount of income tax their employer withholds from their pay. On one hand, this mean a smaller paycheck. On the other hand, the employee is paying more tax upfront. This usually will mean less chance that they employee will see a smaller refund or larger tax bill at tax time.

Have an extra flat-dollar amount withheld from each paycheck.
Employees whose employers are already withholding the least amount of allowances can simply add a specific amount to their withholding. These employees can indicate this amount on a new Form W-4 and submit this to their employer or their employer’s payroll department. For example, an employee can tell their employer to withhold an extra $200 per paycheck. This will allow withholding to occur more evenly throughout the year.

Make estimated tax payments throughout the year.
Estimated payments are another way for taxpayers to pay what they owe in separate payments made throughout the year. For tax year 2019, the remaining estimated tax payments are due from individual taxpayers on September 16, 2019, and January 15, 2020. The fastest and easiest way to make estimated tax payments is electronically using Direct Pay or Electronic Federal Tax Payment System. Taxpayers can visit IRS.gov for other payment options.

More information:
Pay as You Go, So You Won’t Owe
Estimated Taxes
Form W-4S, Request for Federal Income Tax Withholding from Sick Pay
Form W-4V, Voluntary Withholding Request

IRS now billing those who filed for 2018 but didn’t pay; many payment options available

WASHINGTON ― The Internal Revenue Service today advised those now receiving tax bills because they filed on time but didn’t pay in full that there are many easy options for paying what they owe.

Taxpayers can pay online, by phone or using their mobile device. Taxpayer who can’t pay in full may consider payment plans and compromise options; the IRS wants anyone facing a tax bill to know that they have many choices available to them.

If a tax return was filed but the amount owed are unpaid, the taxpayer will receive a letter or notice in the mail from the IRS, usually within a few weeks. These notices, including CP14 and CP501, which notify taxpayers that they have a balance due, are frequently mailed during June and July.

Recent major tax law changes affect most taxpayers, and while the vast majority are receiving refunds, others discovered that they owe tax this year. Many of them may qualify for a waiver of the estimated tax penalty that normally applies. See IRS Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for details.

Taxpayers are reminded to pay as much as possible, as soon as possible to minimize interest and penalties.

Making a payment

Taxes can be paid anytime throughout the year. When paying, taxpayers should keep in mind:

Electronic payment options are the quickest way to make a tax payment.
IRS Direct Pay (bank account) is a free way to pay online directly from a checking or savings account.
Taxpayers can choose to pay with a debit or credit card. Although the payment processor will charge a processing fee, no fees go to the IRS.
The IRS2Go app provides mobile-friendly payment options. Taxpayers can use Direct Pay or card payments on mobile devices.
Taxpayers can pay using their tax software when they e-file. For those using a tax preparer, they can ask the preparer to make the tax payment electronically.
Taxpayers may also enroll in the Electronic Federal Tax Payment System and have a choice of using the internet or phone and using the EFTPS Voice Response System.

Those who can’t pay in full have several options. They can:

Set up a payment plan

With the Online Payment Agreement, taxpayers can usually set up a payment plan (including an installment agreement) in a matter of minutes. Individuals who owe $50,000 or less in combined income tax, penalties and interest likely qualify for an Online Payment Agreement.

Online applications to establish tax payment plans are available Monday – Friday, 6 a.m. to 12:30 a.m.; Saturday, 6 a.m. to 10 p.m.; Sunday, 6 p.m. to midnight. All times are Eastern time.

Another option is getting a loan. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law.

Make paying easier

Automating payments makes it easy to avoid default. Using direct debit from a bank account or a payroll deduction means taxpayers don’t have to remember to send in a payment and saves postage costs. User fees may apply, except to low-income taxpayers, but are lower than fees for manual payment plans.

Pausing collection

If the IRS determines a taxpayer is unable to pay, it may delay collection until their financial condition improves.

Settle for less

The Offer in Compromise program allows some struggling taxpayers to settle their tax bill for less than the full amount due. User fees apply except to low-income taxpayers. This year’s Offer in Compromise guide and application can be found at www.irs.gov/OICbooklet. The online Offer in Compromise Pre-Qualifier tool can help taxpayers determine if they are eligible.

Check tax withholding

For many taxpayers, this year’s unexpected tax bill could have been avoided with a Paycheck Checkup. The IRS urges all taxpayers to check their withholding for 2019, including those who made withholding adjustments in 2018 or had a major life change. Those most at risk of having too little tax withheld from their pay include taxpayers who itemized in the past but now take the increased standard deduction as well as two-wage-earner households, employees with non-wage sources of income, and those with complex tax situations.

Taxpayers can figure out the appropriate withholding to their paychecks with the IRS’s Withholding Calculator on IRS.gov. It’s never too early to check withholding.

Online tools

The IRS urges everyone to take advantage of the many tools and other resources available on IRS.gov. The Let Us Help You page answers most tax questions, and Publication 5136, IRS Services Guide, links to these and other IRS services.

Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, payment history and key information for the most current year tax return as originally filed. Visit IRS.gov/secureaccess to review the required identity authentication process.

It’s summertime…and these tips can help make livin’ easy for teens with jobs

With summer almost here, many students will turn their attention to making money from a summer job. Whether it’s flipping burgers or filing documents, the IRS wants student workers to know some facts about their summer jobs and taxes.

Not all the money they earn will make it to their pocket because employers must withhold taxes from their paycheck. Here are some tax tips young individuals should know when starting a summer job.

New employees: Employees – including those who are students – normally have taxes withheld from their paychecks by their employer. When anyone gets a new job, they need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from the new employee’s pay. The Withholding Calculator on IRS.gov can help a taxpayer fill out this form.

Self-employment: Students who do odd jobs over the summer to make extra cash are self-employed. This include jobs like baby-sitting or lawn care. Money earned from self-employment is taxable, and self-employed workers may be responsible for paying taxes directly to the IRS. One way they can do this is by making estimated tax payments during the year.

Tip income: Students working as waiters or camp counselors who earn tips as part of their summer income should know tip income is taxable. They should keep a daily log to accurately report tips. They must report cash tips to their employer for any month that totals $20 or more.

Payroll taxes: This tax pays for benefits under the Social Security system. While students may earn too little from their summer job to owe income tax, employers usually must still withhold Social Security and Medicare taxes from their pay. If a student is self-employed, Social Security and Medicare taxes may still be due and are generally paid by the student.

Reserve Officers’ Training Corps pay: If a student is in an ROTC program, and receives pay for activities such as summer advanced camp, it is taxable. Other allowances the student may receive – like food and lodging – may not be taxable. The Armed Forces’ Tax Guide on IRS.gov provides details.

For Small Business Week: Backup withholding rate now 24 percent, bonuses 22 percent; workers urged to do a Paycheck Checkup

WASHINGTON — The Internal Revenue Service today reminded small businesses that recent tax reform legislation lowered the backup withholding tax rate to 24 percent and the withholding rate that usually applies to bonuses and other supplemental wages to 22 percent. The agency also urged employers to encourage their employees to check their withholding using the IRS Withholding Calculator. [Read more…]

Estimated taxes form and publication can help people pay the right amount in 2019

Estimated taxes form and publication can help people pay the right amount in 2019

WASHINGTON –The Internal Revenue Service today reminded self-employed individuals, retirees, investors and others who pay their taxes quarterly that the first estimated tax payment for tax year 2019 is due Monday, April 15, 2019, for most taxpayers. A 2018 tax return and 2019 Form 1040-ES, Estimated Tax for Individuals, can help these taxpayers estimate their first quarterly tax payment.

The Tax Cuts and Jobs Act changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding. The law changed tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit and limited or discontinued other deductions. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through estimated tax payments. The 2019 Form 1040-ES and instructions include inflation adjustments for the standard deduction, income tax rate schedules for tax year 2019 and a worksheet to help taxpayers figure estimated tax payments correctly.

A companion publication, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, which can help taxpayers determine whether they should change their withholding or make estimated income tax payments. This publication may be helpful for those who have dividend or capital gain income, owe alternative minimum tax or have other special situations.

Who needs to pay quarterly?

Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of people whose income is not subject to withholding – often need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.

Because the U.S. federal income tax is a pay-as-you-go tax, taxpayers are required to pay the tax as they earn or receive income during the year. If a taxpayer didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, the taxpayer may normally have to pay a penalty. Recent major tax law changes affect most taxpayers, and while the vast majority are on track to receive a refund, others are finding that they owe on their taxes. Many taxpayers who owe for 2018 may qualify for a waiver of the estimated tax penalty that normally applies.

For 2019, an estimated tax penalty will generally apply to anyone who pays too little tax, generally less than 90 percent of the tax reported on their 2019 income tax return, during the year through withholding, estimated tax payments or a combination of the two. In addition, individuals who base their payments of estimated tax on last year’s tax will not be subject to a penalty if they pay 100 percent of the tax reported on their prior year’s return (110 percent if their income was more than $150,000).

Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees, and those who receive income unevenly during the year. See Form 2210 and its instructions for more information.

Employees have a choice

Many employees who also receive income from other sources may be able to forgo making estimated tax payments if they increase the amount of income tax withheld from their pay instead of making estimated tax payments. They can do this by claiming fewer withholding allowances on their Forms W-4, Employee’s Withholding Allowance Certificate, by completing the Deductions, Adjustments, and Additional Income Worksheet in the instructions to Form W-4. Taxpayers can also ask their employer to withhold an additional flat-dollar amount each pay period.

Do a Paycheck Checkup

Because of the far-reaching tax changes from the Tax Cuts and Jobs Act, the IRS urges all employees, including those with other sources of income, to perform a Paycheck Checkup every year. This means taking steps now to help avoid an unexpected tax bill and possibly a penalty next year when they file. Taxpayers can use the IRS Withholding Calculator available on IRS.gov to do a Paycheck Checkup. However, employees who expect to receive long-term capital gains or qualified dividends, or employees who owe self-employment tax, alternative minimum tax, or tax on unearned income of minors, should use the instructions in Publication 505 to check whether they should change their withholding or make estimated tax payments.

To use the IRS Withholding Calculator, taxpayers should have their 2018 tax return and their most recent paystubs available. The Withholding Calculator results will recommend the number of allowances the employee should claim on their Form W-4. If the Withholding Calculator suggests a change, the employee should fill out a new Form W-4 and give it to his or her employer.

Although the calculator is primarily designed for employees who receive wages, it can also be helpful to some recipients of pension and annuity income. Pension and annuity recipients can change their withholding by filling out Form W-4P and giving it to their payer.

How and when to pay

For tax year 2019, estimated tax payments are due from individual taxpayers on April 15, June 17, Sept. 16 and Jan. 15, 2020. Taxpayers who have not yet filed their income tax returns and are due a refund of their 2018 federal income tax may be able to reduce or even skip one or more of these payments by choosing to apply their 2018 tax overpayment to their 2019 estimated tax. See Form 1040 and its instructions for more information.

Taxpayers in presidentially declared disaster areas may have more time to make these payments without penalty. Visit the Tax Relief in Disaster Situations page for details.

The fastest and easiest way to make estimated tax payments is electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. For those who choose to pay by check, it must be made payable to the United States Treasury.

Taxpayers can get more information about tax withholding and estimated tax on the IRS’s Pay As You Go web page, as well as in Publication 505, Tax Withholding and Estimated Tax.

Business taxpayers should take another look at their estimated tax payments

Business taxpayers should take another look at their estimated tax payments

Taxpayers who pay quarterly estimated tax payments may want to revisit the amount they pay. The Tax Cuts and Jobs Act changed the way most taxpayers calculate their tax. These taxpayers include those with substantial income not subject to withholding, such as small business owners and self-employed individuals. The tax reform changes include:

Revised tax rates and brackets
New and revised business deductions
Limiting or discontinuing deductions
Increasing the standard deduction
Removing personal exemptions
Increasing the child tax credit

As a result of these changes, many taxpayers may need to raise or lower the amount of tax they pay each quarter through estimated taxes.

Alternatively, many taxpayers who receive income not subject to withholding, but who also receive income as an employee, may be able to avoid the requirement to make estimated tax payments by having more tax taken out of their pay. These taxpayers can use the Withholding Calculator on IRS.gov to perform a Paycheck Checkup. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty in the future.

Taxpayers with more complex situations might need to use Publication 505, Tax Withholding and Estimated Tax, instead. This includes people who owe self-employment tax, the alternative minimum tax, or tax on unearned income from dependents, and people with capital gains or dividends.

Form 1040-ES can also help taxpayers figure these payments simply and accurately. The estimated tax package includes a quick rundown of key tax changes, income tax rate schedules for 2019 and a useful worksheet for figuring the right amount of tax to pay.

Estimated tax penalty relief
The IRS is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under TCJA.

The IRS will generally waive the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty. For more information about the penalty and requesting the waiver, see Form 2210 and its instructions.

Separately, farmers and fishermen qualify for a waiver if they file their 2018 tax return and pay all taxes due by April 15, 2019; April 17 for residents of Maine and Massachusetts. The usual deadline is March 1.

Taxpayers can follow these steps for Using the Withholding Calculator on IRS.gov

Taxpayers can follow these steps for Using the Withholding Calculator on IRS.gov

The IRS encourages everyone to use the Withholding Calculator to do a Paycheck Checkup, which is even more important this year because of tax law changes. Taxpayers who haven’t yet done this can follow the steps below for using the calculator.

Results from the calculator will include a recommendation of whether they should consider submitting a new Form W-4, Employee’s Withholding Allowance Certificate, to their employers. Before beginning, taxpayers should have a copy of their most recent pay stub and tax return.

First, taxpayers should go to the main Withholding Calculator page on IRS.gov. Carefully read all information and click the blue Withholding Calculator button.

Use the buttons at the bottom of each page to navigate through the calculator. The buttons allow users to continue inputting their information, reset the information on that page, or start over from the beginning.

Input general tax situation information, including:

Filing status.
Whether anyone can claim the users as dependents.
Total number of jobs held during the year.
Contributions to a tax-deferred retirement, cafeteria or other pre-tax plan.
Scholarships or fellowship grants received that are included in gross income.
Number of dependents.

Input information about credits, including:

Child and dependent care credit.
Child tax credit.
Earned income tax credit.

Enter the total estimated taxable income expected during the year. Amounts the user will enter include wages, bonuses, military retirement, taxable pensions, and unemployment compensation. Users should enter a “0” on lines asking for amounts that don’t apply to them.

Enter an estimate of adjustments to income, including deductible IRA contributions and education loan interest.

Indicate standard deduction or itemized deductions. Users who plan to itemize will enter estimates of these deductions.

Print out the summary of results. The calculator will provide a summary of the taxpayer’s information. Taxpayers use the results to determine if they need to complete a new Form W-4, which they submit to their employer.

Form W-4 for 2019 will be similar to 2018 version

Form W-4 for 2019 will be similar to 2018 version

Following feedback from the payroll and tax communities, the Treasury Department and the IRS will incorporate important changes into a new version of the Form W-4, Employee’s Withholding Allowance Certificate, for 2020. The 2019 version of the Form W-4 will be similar to the current 2018 version. A new draft version of the W-4 for 2019 will be available in the coming weeks.

The IRS will continue working closely with the payroll and the tax community as it makes additional changes to the Form W-4 for use in 2020. The new version will help employees improve withholding accuracy, and fully reflect changes included in the Tax Cuts and Jobs Act.

For the current 2018 tax year, the IRS continues to strongly urge taxpayers to review their tax withholding situation as soon as possible to avoid having too little or too much withheld from their paychecks. Click here to perform a quick “paycheck checkup” using the IRS withholding calculator.

The Tax Cuts and Jobs Act changed the way tax is calculated.

The IRS encourages everyone to perform a “paycheck checkup” to see if you have the right amount of tax withheld for your personal situation.

For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things:

The amount you earn.
The information you give your employer on Form W–4.

For help with your withholding, you may use the Withholding Calculator. You can use the Withholding Calculator to estimate your 2018 income tax. The Withholding Calculator compares that estimate to your current tax withholding and can help you decide if you need to change your withholding with your employer.

More details about the Withholding Calculator and the new 2018 withholding tables can be found on the Frequently Asked Question pages:

Everything to Know About the Form W-4

A standout amongst the most imperative finance tax documents is set for an upgrade—once more.

On June 6, the IRS distributed a draft variant of the 2019 Form W-4 to reflect changes made by a years ago’s notable expense change charge. The news speaks to a finish on office comments made at a finance gathering recently. You can read Namely’s inclusion of that occasion here.

Recompenses Eliminated

While the full name of the Form W-4 remains the “Withholding Allowance Certificate,” any notices of duty stipends have been generally stripped from the frame.

For setting, remittances are claims a representative can make to diminish their assessable wage. Before, workers could guarantee a kid, ward, life partner, or even themselves as a stipend. The frame incorporated an individual remittance worksheet that representatives could use to compute what amount ought to be withheld from their paychecks to abstain from owing come assess documenting season. You can take in more about stipends here.

The new, draft rendition of the shape gets rid of this decades-old process and the recompense worksheet. Keeping in mind the end goal to decide paycheck withholdings, it rather requests that workers show particular dollar sums for various fields including:

Nonwage pay including interest or profits

For people with different occupations or the individuals who are hitched and anticipating recording mutually, the aggregate sum earned from different employments

Organized and different conclusions

Extra sum workers need to withhold from every paycheck

On the off chance that a representative feels awkward sharing their nonwage or life partner’s salary with their boss, the shape trains them utilize the IRS’s online mini-computer to decide the amount to incorporate into the extra sum withheld field.

HR Implications

HR and finance experts should take note of that the as of late distributed Form W-4 speaks to a working draft. The office is relied upon to distribute a finished variant of the 2019 frame by late August.

Given the real ramifications of duty change, the IRS has encouraged citizens to “check their check” this year and alongside abstain from documenting season shocks. While the office has not yet shown that it will require all representatives to document new Form W-4s for 2019, it will probably unequivocally urge them to. At any rate, HR groups should refresh their onboarding procedure to join the new frame.

Retirees: Avoid a surprise tax bill; get enough tax taken out of pension payments; IRS Withholding Calculator can help

Retirees: Avoid a surprise tax bill; get enough tax taken out of pension payments; IRS Withholding Calculator can help

WASHINGTON – With tax reform bringing major changes for the year ahead, the Internal Revenue Service today urged retirees to make sure they are paying in enough tax during the year by using the Withholding Calculator, available on IRS.gov.

This is the second in a series of four news releases aimed at helping taxpayers pay the right amount of tax and avoid an estimated tax penalty. During this series, the IRS is highlighting resources and tools available to taxpayers to help avoid a surprise at tax time. This is part of the Paycheck Checkup campaign to encourage people to check their tax situation as soon as possible.

The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers including retirees. Among other reforms, the new law changed the tax rates and brackets, increased the standard deduction, removed personal exemptions and limited or discontinued certain deductions. As a result, many taxpayers may need to raise or lower the amount of tax they pay in during the year.

For retirees who receive a monthly pension or annuity check, this may mean changing the amount of federal income tax they have withheld. The easiest way to do that is to use the Withholding Calculator. Though primarily designed for employees who receive wages, this useful online tool can also be helpful to those who receive pension or annuity payments on a regular schedule, usually monthly or quarterly.

Like employees, retirees can use this online calculator to estimate their total income, deductions and tax credits for 2018. As noted in the Withholding Calculator’s step-by-step instructions, retirees should treat their pension like income from a job by entering the gross amount of each payment, how often they receive a payment (monthly, quarterly, etc.) and the amount of tax withheld so far this year.

To protect taxpayer privacy, the IRS emphasized that the Withholding Calculator does not request any personally-identifiable information such as name, Social Security number, address or bank account numbers. Additionally, the agency does not save or record any of the information entered on the calculator.

To use the Withholding Calculator most effectively, users should have a copy of last year’s tax return at hand. In addition, knowing or having a record of the total federal income tax withheld so far this year will also make the tool’s results more accurate. After filling out the Withholding Calculator, the tool will recommend the number of allowances a pension recipient should claim.

If the number is different from the number they are claiming now, they should fill out a new withholding form. Claiming more allowances reduces the amount of tax taken out; claiming fewer allowances increases tax withholding. If claiming zero allowances still doesn’t cover their expected tax bill, the tool will recommend that they ask their payor to withhold an additional flat-dollar amount from each payment.

Pension recipients can make a withholding change by filling out Form W-4P, available on IRS.gov, and giving it to their payer. This form is similar to the more familiar Form W-4 that employees give to their employers. To give payors time to apply any required withholding changes to as many payments as possible, the IRS urges retirees to submit revised Forms W-4P to their payors as soon as they can.

Because of the limited amount of time left in 2018, some retirees may be unable to adequately cover their expected tax liability through withholding. In that case, another option is to make a quarterly estimated or additional tax payment directly to the IRS.

Because the U.S. tax system operates on a pay-as-you-go basis, everyone is required, by law, to pay most of their tax liability during the year. Doing so will help avoid a surprise year-end tax bill and in some instances, a penalty. For more information about the penalty, including details on exceptions and special rules that may apply, see Publication 505, Tax Withholding and Estimated Tax, available on IRS.gov.

Individuals who receive income not subject to withholding may need to make estimated tax payments. This includes individuals who receive unexpected income late in the year, such as capital gains on the sale of stock or property, stock or mutual fund dividends or income from the sharing economy.

Form 1040-ES, available on IRS.gov, is designed to help taxpayers figure their estimated tax payments simply and accurately. The estimated tax package includes a quick rundown of key tax changes, income tax rate schedules for 2018 and a useful worksheet for figuring the right amount to pay.

The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments.

Whether or not retirees receive a pension, there’s another option, available to most of them, for paying their income tax liability during the year. They can ask the Social Security Administration to withhold tax on their Social Security benefits. Unlike wages and pensions, withholding on Social Security benefits and other government payments is voluntary and not based on withholding allowances. Instead, beneficiaries can choose to have income tax withheld at one of four flat rates — 7 percent, 10 percent, 12 percent or 22 percent. To request voluntary withholding and for more information, get Form W-4V , available on IRS.gov.