IRS Debuts Smart Withholding Calculator for Freelancers

IRS Debuts Smart Withholding Calculator for Freelancers

To address growing freelance income across the U.S., the IRS launched a new Smart Withholding Calculator in June 2025. The tool helps independent workers forecast quarterly tax payments with precision. Freelancers input client income, business expenses, and state rates.
The calculator adjusts real-time based on updated earnings and even includes push alerts before payment deadlines. It aims to reduce penalties and tax surprises for gig workers and creators. The IRS may also integrate the tool with popular invoicing apps like QuickBooks and HoneyBook later this year.
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