With the new tax law that is now in place, the IRS is encouraging taxpayers to do a “paycheck checkup” to make sure that enough tax is being withheld from their paychecks. This is especially important for
- 2 Income Families
- People with 2 or more jobs concurrently or those who only work part-time
- People claiming the child tax credit
- People with Itemized Deductions
- People with high income and more complex tax returns
More information on the new Withholding calculator can be found here or here or you can watch a video from the IRS here. The IRS has also provided Tips for Using the Withholding Calculator and Step by Step Instructions for Using the new calculator.
After you have used the calculator and determined the updated withholding amount, follow these Tips for Updating Form W4, Employee’s Withholding Allowance Certificate.
If you have questions regarding using the new Withholding Calculator, please Contact Us so we can walk you through the process.