The IRS has updated its Tax Withholding Estimator (https://bit.ly/3VjGqR1 ) to reflect changes under the One Big Beautiful Bill Act (OBBBA). This free online tool helps taxpayers calculate the correct amount of federal income tax to withhold from their paychecks or other payments, such as those from pensions, to avoid unexpected tax bills. The calculator now takes into account OBBBA provisions that eliminated tax on qualified tips and overtime and provided new deductions for seniors and auto loan interest. It also more accurately accounts for OBBBA changes to credits related to families, homeownership and charitable giving. If you need assistance with estimating your taxes, contact us.
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