The Internal Revenue Service (IRS) is asking employers to remind employees to do a “paycheck checkup” to make sure they are having the right amount of tax withheld. The new tax law adopted in December 2017 could affect how much tax employees should have their employer withhold from their paycheck.
Taxpayers can use the revised Withholding Calculator to estimate their 2018 income tax. The calculator compares the estimate to the taxpayers’ current tax withholding and can help them decide if they need to change their withholding. When using the calculator, it is helpful to have a completed 2017 tax return available.
To use the calculator, visit www.irs.gov. If the calculator shows a change to withholding, the taxpayer will need to complete a new Form W-4.
In addition to the revised Withholding Calculator, the IRS has launched a series of Tax Reform Tax Tips, a Tax Tips email subscription program and YouTube videos to walk taxpayers through what they need to know about the new tax laws and how to fill out the appropriate forms.
More information is available at the IRS website, www.irs.gov.