As the IRS implements major tax legislation, several key groups of taxpayers are encouraged to peform a "Paycheck Checkup" to check if they are having their employer withhold the right amount of tax for their situation. It is especially important for the following types of people to check their witholding:
- Belong to a two-income family
- Work two or more jobs or only work for part of the year
- Have children and claim credits such as the Child Tax Credit
- Have older dependents, including children of age 17 or older
- Itemized deductions on their 2017 tax returns
- Earn high incomes and have more complex tax returns
- Received large tax refunds or had large tax bills for 2017
The IRS has provided a withholding calculator on their website for this purpose. Go to this link: IRS Withholding Calculator
A new version of the W-4 Form is now available for taxpayers to update their withholdings following passage of the Tax Cuts and Jobs Acts. If withholding changes should be made, the witholding calculator will provide the information an employee needs to fill out the new W-4 Form. Employees will need to submit the completed W-4 Form to their employer.
You can obtain the new W-4 Form here: Form W-4 (2018)
As the IRS continues to work on the implementation of the Tax Cuts and Jobs Acts (TCJA). This major tax legislation will affect individuals, businesses, tax exempt and government entities. To obtain the latest updates and resources go to this link Tax Reform, and check back often to see how it will affect you.
- Tax Reform Provisions that Affect Individuals. Retreived from IRS.gov/newsroom (8/3/18)