It May Be Time to Check Your Withholding

 

Have you checked your withholding since the Tax Cuts & Jobs Act passed? There is a calculator on the IRS website that you can use to perform a quick check.

The calculator will allow you to make sure the right amount is being withheld from your paycheck. This is a good idea for a variety of reasons:

  • It may protect you from having too little withheld…which could lead to an unexpected tax bill next April!
  • It could also mean more money in your pocket every payday, if you discover you’re having too much withheld.

If you decide you need to change your withholding, you’ll need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. You can use your results from the Calculator to help fill out the form and adjust your income tax withholding.

Click here to access the calculator

The following tips are from www.irs.gov for using the withholding calculator:

The Calculator will ask you to estimate values of your 2018 income, the number of children you will claim for the Child Tax Credit and Earned Income Tax Credit, and other items that will affect your 2018 taxes. This process will take a few minutes.

  • Gather your most recent pay stubs.
  • Have your most recent income tax return handy; a copy of your completed Form 1040 will help you estimate your 2018 income and other characteristics and speed the process.
  • Keep in mind that the Calculator’s results will only be as accurate as the information you provide.  If your circumstances change during the year, come back to this Calculator to make sure that your withholding is still correct.
  • The Withholding Calculator does not ask you to provide sensitive personally-identifiable information like your name, Social Security number, address or bank account numbers. The IRS does not save or record the information you enter on the Calculator.
  • IMPORTANT NOTE: This Withholding Calculator works for most taxpayers. People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe self-employment tax, alternative minimum tax, the tax on unearned income of dependents or certain other taxes, and people with long-term capital gains or qualified dividends.