Do a “Paycheck Check-up”

In the world of “we’re from the government and we’re here to help”

I am genuinely concerned that the Tax Cuts and Jobs Act(TCJA) will effect employees when filing your taxes for 2018. With four pay dates remaining the time to change withholding is limited. You can complete a form W-4 at any time. Changes occur when payroll is processed

I would encourage all employees to visit the IRS.GOV site and Use the Withholding Calculator to make sure you have the right amount of tax withheld for your situation.

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.”  This is even more important this year because of recent changes to the tax law for 2018.

The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.

There are several reasons to check your withholding:

  • Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
  • At the same time, with the average refund topping $2,800, you may prefer to have less tax withheld up front and receive more in your paychecks.

If you are an employee, the Withholding Calculator helps you determine whether you 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.  If you receive pension income, you can use the results from the calculator to complete a Form W-4P and give it to your payer.

Please do this. I can’t do this for you. Joking aside I am really concerned that with the changes from the TCJA some employees that may have enjoyed a “refund” may have to “pay”.