Tax Reform Tax Tip 2018-154: Taxpayers who haven’t checked their withholding should use the Withholding Calculator ASAP

Internal Revenue Service (IRS) sent this bulletin at 10/03/2018 12:28 PM EDT

IRS Tax Tips

October 3, 2018

Issue Number: Tax Reform Tax Tip 2018-154

Taxpayers who haven’t checked their withholding
should use the Withholding Calculator ASAP

The IRS recommends taxpayers use the Withholding Calculator to do a “Paycheck Checkup” as soon as possible. This will help taxpayers check that they are having the correct amount of income tax withheld from their paychecks.

Earlier this year the IRS updated the Withholding Calculator tool on IRS.gov to reflect changes in the Tax Cuts and Jobs Act passed in December.

Doing a checkup can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time in 2019. Some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks, which would reduce their tax refund next year.

While it’s a good idea for everyone to check their withholding, it’s especially important for these people to use the Withholding Calculator to make sure they have the right amount of tax withheld:

Two-income families
People with two or more jobs at the same time or who only work for part of the year
People who claim credits such as the Child Tax Credit
People who claim older dependents, including children age 17 or over
People who itemized deductions in 2017
People with high incomes and more complex tax returns
People with large tax refunds or large tax bills for 2017

Remember, the Withholding Calculator does not ask the user for personally identifiable information, such as name, social security number, address, or bank account numbers. The IRS does not save or record the information the taxpayer enters in the calculator.

Share this tip on social media -- #IRSTaxTip: Taxpayers who haven’t checked their withholding should use the Withholding Calculator ASAP. https://go.usa.gov/xPKwp

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.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

Tax Reform Tax Tip 2018-154: Taxpayers who haven’t checked their withholding should use the Withholding Calculator ASAP

Useful Links:

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: Tax Reform Tax Tip 2018-154