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:
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.