IRS Tax Reform Tax Tip 2018-48: Tips for Updating Form W-4 After Doing a Paycheck Checkup
Internal Revenue Service (IRS) sent this bulletin at 03/29/2018 12:09 PM EDT
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Issue Number: Tax Reform Tax Tip 2018-48Tips for Updating Form W-4 After Doing a Paycheck Checkup With recent tax law changes, the IRS urges taxpayers to look into whether they need to adjust their paycheck withholding and submit a new Form W-4 to their employer. Taxpayers can use the updated Withholding Calculator on IRS.gov to do a quick “paycheck checkup” to check that they’re not having too little or too much tax withheld at work. Taxpayers who use the calculator and determine that they need to change their withholding must fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees will submit the completed Form W-4 to their employers. Here are a few things for taxpayers to remember about updating Form W-4:
People who have too much tax withheld will get less money in their regular paycheck. If those taxpayers change their withholding and enter more allowances on Form W-4, they’ll get more money in their paychecks throughout the year. Employees who have too little withheld are not paying enough taxes throughout the year, and they may face an unexpected tax bill or penalty when they file next year. 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. Share this tip on social media -- #IRSTaxTip: Tips for Updating Form W-4 After Doing a Paycheck Checkup https://go.usa.gov/xQaWY Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message. |