Withholding Checkup

At the end of 2017, significant tax changes were passed in the Tax Cuts and Jobs Act and many American taxpayers began to see the effect of those changes on their pay stubs beginning in January 2018. To ensure the appropriate amount of taxes is withheld, the IRS is encouraging several groups of taxpayers to do a checkup. 

If you are among one or more of these groups, you are encouraged to visit the Withholding Calculator found on the IRS.gov website. The new tax law changes could have a significant effect on the following groups:

• Two-Income families
• 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 age 17 or older
• Itemized deductions on their 2017 personal income tax returns 
• Earn higher incomes and have more complex personal income tax returns 
• Received large tax refunds or had large tax bills for 2017

When completing the online calculator, it is helpful to have a recent pay stub as well as your 2017 tax return on hand for easy reference. 

Taxpayers can use the results from the Withholding Calculator to determine if they need to complete a new W4 Form with their employer. It is important these changes be made early in the year so if any additional withholdings need to be made, they can be distributed evenly throughout the remaining 2018 pay periods.