At Paramount Tax Relief in Sacramento, our staff encourages you to revisit your tax withholding and perform a “paycheck checkup”,especially if major changes from the Tax Cuts and Jobs Act affected the refund amount you received this year. Most changes took place in 2018 and taxpayers first noticed them on the tax return they filed earlier this year.
What is a Paycheck Checkup?
A paycheck checkup can help you see if you’re withholding the right amount of tax from your paycheck, since too little could lead to an unexpected tax bill or penalty. Because of this, it’s extremely important to make sure you have the right amount of tax taken out of your paycheck for your personal situation. A paycheck checkup should be done now to make sure any issues are taken care of as soon as possible.
Among the groups who should check their withholding are:
- 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 older dependents, including children age 17 or older
- People who itemized deductions in 2017
- People with high incomes and more complex tax returns
- People with large tax refunds or large tax bills for 2017
Using the Tax Withholding Estimator
The IRS encourages everyone to use the Tax Withholding Estimator found on IRS.gov to perform a quick paycheck checkup. This tool helps you make sure you have the right amount of withholding at work and determine whether you need to give your employer a new Form W-4.
To use the Estimator, you’ll need to gather your most recent pay stubs and income tax return. Keep in mind that the results you receive will only be as accurate as the information you provide. If your current circumstance changes during the year, revisit the Estimator to make sure that your withholding is still correct.
Questions About Your Paycheck Checkup? Ask Paramount Tax Relief in Sacramento
If you have any questions about your paycheck checkup results or find yourself facing tax trouble, please don’t hesitate to contact our staff at Paramount Tax Relief in Sacramento! Our trusted team is standing by to give you the proper tax help you need.
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