The IRS is conducting a second "paycheck checkup" the week of August 13 in an effort to encourage taxpayers to calculate withholding amounts for their 2018 returns. In light of the new tax law, many tax filers will need to adjust their withholding amounts.
The Tax Cuts and Jobs Act (TCJA) will affect 2018 tax returns. The TCJA increased the standard deduction, increased the Child Tax Credit, limited or discontinued certain itemized deductions and changed tax rates and brackets. Because of these changes, the IRS encourages taxpayers to check and adjust their withholding amounts now in order to avoid an unexpected tax bill and penalties next year.
Those whose withholding amounts could be particularly impacted include individuals who:
Have two or more incomes per family
Work only part of the year or hold two or more jobs at the same time
Claim credits like the Child Tax Credit
Had a large refund or tax bill in 2017
Have dependents age 17 or older
Have a large amount of income or a complex tax return
Claimed itemized deductions in 2017
The IRS encourages taxpayers to utilize the online Withholding Calculator on irs.gov to help determine their withholding amounts. When using the...More