In January the IRS released withholding tables to reflect updated calculations under the new tax law. Most employees should have noticed a change in Federal tax withholdings by their mid-February paycheck. Using the new withholding calculator available on the IRS website will allow employees to double check their withholdings and request changes to their current withholdings if necessary.
The withholding calculator is available here:
Who Should Use the Calculator?
Anyone wishing to confirm the accuracy of their current withholdings can use the IRS Withholding Calculator. If you fall into one or more of the following groups, you should strongly consider using the calculator:
1. Self-employed business owners, pension recipients, social security recipients, and those making estimated tax payments.
2. Those filers residing in states with high state and local taxes should use the calculator as soon as possible, to adjust their withholdings to reflect the reduced State and Local Tax deduction.
3. Two-earner couples should utilize the calculator on an annual basis.
Tips for Using the Calculator:
1. Be sure to have recent paystubs and basic family and expense information before utilizing the calculator.
2. If your circumstances change during the tax year, you should recalculate your recommended withholdings.
3. The IRS withholding calculator does not require you to input sensitive personal information such as your name, address, social security number, or bank information.
4. As always, we advise you to check with your financial advisor or CPA if you have any questions.
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