Paycheck Checkup - Did You Know?
With the major tax law changes, the IRS has issued several press releases urging taxpayers to use the IRS Withholding Calculator to double-check their tax withholding.
The Tax Cuts and Jobs Act passed in December, 2017 made significant changes including:
- Increased standard deduction
- Eliminated personal exemptions
- Increased Child Tax Credit
- Limited or discontinued certain deductions
- Changed the tax rates and brackets
Checking your withholding amount can help protect against having too little tax withheld and getting unexpected tax bills and penalties at tax time next year. You may also prefer to have less tax withheld up front and receive more in your paychecks.
The IRS Withholding Calculator can be found at: https://www.irs.gov/individuals/irs-withholding-calculator.