It’s Time for a Paycheck Checkup
Posted On: 4-10-2018 | Posted By: WK Staff
As we near the end of tax season for 2017 returns, it is a perfect time to perform a “Paycheck Checkup.” At the end of 2017, significant tax changes were passed in the Tax Cuts and Jobs Act and many American taxpayers whom have regular income began to see the effect of those changes on their pay stubs beginning in January of this year.
To ensure the appropriate amount of tax withholdings, and that there are no unexpected surprises when it is time to file for 2018 taxes, the IRS is encouraging several groups of taxpayers to do a checkup.
The new tax law changes could have significant effect on the following groups. If you are among one or more of these groups, you are encouraged to visit the Withholding Calculator found on the IRS.gov website.
- 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 5-page Withholding Calculator to help determine if they need to complete a new W4 Form with their employer. It is important that these changes be made earlier in the year so that if any additional withholdings need to be made, they can be distributed evenly throughout the remaining 2018 pay periods.
If you have any questions, or prefer your WK Advisor assist with this review, please click here to contact them. You may also reach us by phone at 573-635-6196 (Jefferson City Office) or 573-442-6171 (Columbia).