The Internal Revenue Service recently released an updated Withholding Calculator and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following the major changes in the tax law.
The IRS encourages taxpayers to use these tools to make sure they have the right amount of tax taken out of their paychecks and thus avoid a larger tax bill for 2018.
The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.
Determining how much to withhold depends on your unique financial situation. Contact one of our member firms for a paycheck checkup.