Tax Reform Tax Tip 2019-73: All taxpayers should check their withholding ASAP

Internal Revenue Service (IRS) sent this bulletin at 06/10/2019 11:40 AM EDT

IRS Tax Tips

June 10, 2019

Issue Number: Tax Reform Tax Tip 2019-73

All taxpayers should check their withholding ASAP

All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year.

By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important:

Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP.
Taxpayers should also check their withholding when life changes occur. These changes include things like:
- Marriage or divorce
- Birth or adoption of a child
- Purchase of a home
- Retirement
- Chapter 11 bankruptcy
- New job or loss of job
Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like:

Interest
Dividends
Capital gains
Self-employment and gig economy income
IRA distributions, including certain Roth IRAs

Some life changes might affect a taxpayer’s itemized deductions or tax credits. The taxpayer should check their withholding if they experience changes to their:

Medical expenses
Taxes
Interest expense
Gifts to charity
Dependent care expenses
Education credit
Child tax credit
Earned income tax credit

The best way for taxpayers to check their withholding is to use the Withholding Calculator on IRS.gov.

More information:
Pay as You Go, So You Won't Owe
Estimated Taxes
Form W-4S, Request for Federal Income Tax Withholding from Sick Pay
Form W-4V, Voluntary Withholding Request

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Tax Reform Tax Tip 2019-73: All taxpayers should check their withholding ASAP

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Issue Number: Tax Reform Tax Tip 2019-73