The IRS released a Withholding Calculator to help you perform a “paycheck check-up.”
Recall at the beginning of the year, Congress passed the Tax Cuts and Jobs act, and President Trump promised more money in the pockets of Americans during tax time. We all hope it’s true, but as a tax pro, I can honestly say that we have yet to see what the tax season will bring. That being said, the IRS has released a neat little [late] tool to help you to plan.
IRS – maybe you could have released this tool a bit earlier in the year? We’ve got just about 3 months left in 2018. I’m sure the tool took most of the year to develop… (tax dollars at work!) So by all means, everybody, if you have children or other dependents, please try it!
What is it?
The Withholding Calculator allows taxpayers to enter their total expected 2018 income, deductions, adjustments and credits, and get a good gauge of whether withholding was adequate this year or not.
As I said, it’s a bit late to plan, but at least we can prepare if we need to. To find out how to use the calculator and how to change withholding, taxpayers can check out the IRS Tax Reform Tax Tips on IRS.gov.
Taxpayers may also need to determine if they should make adjustments to their state or local withholding. They can contact their state’s department of revenue to learn more.
Thanks for reading, and happy taxing!