The last quarter of 2021 is a good time to check your withholding, the IRS reminds taxpayers.
“Life brings constant changes to individual financial situations,” the agency says. “Events like marriage, divorce, a new child or home purchase can all be reasons to adjust withholding.”
The IRS’ tax withholding estimator can help taxpayers determine if they have too much withheld and how to make an adjustment to collect more money. In other cases, the tool can help make an estimated tax payment to avoid a surprising bill when the taxpayer files their return next year.