Complete question:
Mark and Sue are married and U.S. citizens with valid Social Security numbers. The Malones received wages and a large amount of taxable income not subject to withholding. Mark did not have health insurance coverage for 2019 and Sue had health insurance coverage through her employer. The Malones have a $2,500 balance due on their joint return and want advice on how to prevent a balance due next year. They do not anticipate a change in their sources of income and amounts received next year.
One of the ways Mark and Sue can prevent having a balance due next year is to use the Tax Withholding Estimator at IRS.gov and then adjust their withholding.
(A) True
(B) False
Answer:
A) True
Explanation:
The Mark must follow the guidelines of Internal Revenue services which are published at least once a year and provides every single details of the tax implications. After careful reading of the tax implication then they should calculate their taxes by simply using the IRS Tax Withholding Estimator.
The Internal Revenue Services says that the use of Tax Withholding Estimator helps best in estimation of with holding taxes and in tax planning.
Most of the tax planners and advicers are the corporate tax experts which help the employee in tax planning or those who provide tax services to entrepreneurs and soletraders which earn fees from their tax advices. IRS estimator also helps the tax payers to pay taxes in instalments. The tax planner can also plan its payments by simply altering its entry in the data entering blocks and see what are the implications of the plan choosed.
