Tax Check: Ask Employees to Review W-4 Withholding
Now that we are halfway through 2019, it might be a helpful reminder to employees to review their paycheck withholding and make any needed adjustments by submitting an updated W-4 to HR.
To help make sure they are having the right amount of tax withheld, the IRS has an online Paycheck Checkup calculator.
Most TCJA changes took effect in 2018 and, for most taxpayers, impacted the return they filed earlier this year.
The Tax Cuts and Jobs Act, tax reform legislation enacted in December 2017, changed the way tax is calculated for most taxpayers.
Those changes will also apply to 2019 tax returns filed in early 2020.
As a result, some taxpayers ended up receiving 2018 refunds that were larger or smaller than expected, while others unexpectedly owed additional tax when they filed earlier this year.
Those taxpayers may need to raise or lower the amount of tax they have taken out of their pay throughout the year.
The IRS Withholding Calculator enables taxpayers to get their tax withholding right by making sure these and other tax changes are built into their take-home pay.
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