Saturday, 21 July, 2018

Taxpayers Can Use New IRS Withholding Calculator to Check for Paycheck Errors

The Internal Revenue Service has introduced a new tax withholding calculator. FOX 47 News The Internal Revenue Service has introduced a new tax withholding calculator. FOX 47 News
Nellie Chapman | 04 March, 2018, 06:48

The new tax withholding calculator appears here.

But make sure you're not getting too much of a pay bump - or too little.

WASHINGTON-Taxpayers may now use an IRS tool to determine how much they should have withheld from their paychecks under the new tax law. This is even more important this year because of recent changes to the tax law for 2018.

The Treasury Department on Wednesday released an updated online calculator that allows taxpayers to input their financial information and estimate 2018 income tax liability. "Employees should also use the calculator every year in order to ensure they continue to have the appropriate withholding".

A revised version of this tax withholding calculator can be used here.

If you have additional questions about your withholding, consult your employer or tax advisor.

For the most comprehensive assessment, use the calculator. By the way, have you filed your tax return yet, readers? Any changes could affect whether you get too much or too little money back.

The IRS suggests people at risk of being under-withheld may include those who itemized their deductions in the past, have two or more jobs in their household, or who have dependents age 17 or over. The IRS does not save or record the information you enter on the Calculator.

At the same time, with the average refund topping $2,800, you may prefer to have less tax withheld up front and receive more in your paychecks.

The IRS said that those with simple tax situations may not need to make any changes to their withholding because of the new tax law. What concerns, if any, do you have regarding the new tax law?

If you decide to change your withholding allowances for this year, you'll need to resubmit another W-4 form to your employer.