Please reload

Recent Posts

Waived penalty for those of you whose tax withholding and estimated tax payments fell short in 2018

January 24, 2019

1/10
Please reload

Featured Posts

What to do if you need to file a new W-4

August 17, 2018

 

This is a reminder of how important it is to check your withholding with the new tax law in place. If you need to adjust your withholding, you should submit a new Form W-4, to your employer.

 

IRS also has an updated Withholding Calculator on IRS.gov to do a quick “paycheck checkup”

 

Here is a list of who should double check the withholdings:

 

  • Two-income families

  • People working two or more jobs or who only work for part of the year

  • People with children who claim credits such as the child tax credit

  • People with other dependents who can’t be claimed for the child tax credit, including children age 17 or older

  • People who itemized deductions on their 2017 tax return

  • People with high incomes and more complex tax returns

  • People with large tax refunds or large tax bills for 2017

 

Here are a few tips about updating Form W-4:

 

  • The Withholding Calculator will help determine if you should complete a new Form W-4.

  • The calculator will help you determine the information to put on a new Form W-4.

  • If you use the calculator to check your withholding, you don’t need to complete the Form W-4 worksheets. The calculator does the worksheet calculations.

  • If you complete a new Form W-4, you should submit it to your employer as soon as possible.

 

As a general rule, the fewer withholding allowances you enter on Form W-4, the higher your tax withholding. Entering “0” or “1” on line 5 of the W-4 will result in withholding more tax. Entering a larger number means less tax withholding, resulting in a smaller tax refund or potentially a tax bill or penalty.