Paycheck Checkup
Everyone should check their withholding
It’s important to revisit your tax withholding, especially if major changes from the Tax Cuts and Jobs Act affected the size of your refund this year. Even if you did a Paycheck Checkup last year, you should do it again to account for differences from TCJA or life changes. A Paycheck Checkup can help you see if you’re withholding the right amount of tax from your paycheck. Too little could mean an unexpected tax bill or penalty.
You should check your withholding if you . . .
Families with two incomes or someone who has multiple jobs may be more vulnerable to being underwithheld or overwithheld following major law changes. The Tax Withholding Estimator can help navigate the complexities of multiple-employer tax situations and determine the correct amount of tax for each employer to withhold.
Resources:
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2019-97, IRS: Doing a ‘Paycheck Checkup’ is a good idea for workers with multiple jobs
- IR-2018-124, Two-income families, taxpayers working multiple jobs should check withholding amount
Any changes that a part-year employee makes to their withholding can affect each paycheck in a larger way than employees who work year-round. The Tax Withholding Estimator can help taxpayers with part-year employment estimate their income, credits, adjustments and deductions more accurately and check if they have the right amount of tax withheld for their situation.
Resources:
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2018-118, Seasonal, Part-year Workers Urged to Check Tax Withholding Amount
The law expanded and made significant changes to the Child Tax Credit. It also suspended the deduction for personal exemptions. Parents and caregivers should do a Paycheck Checkup to determine how these changes could affect their tax situation.
Resources:
- News Releases:
- IR-2019-112, IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now
- IR-2019-111, IRS reminds taxpayers to adjust tax withholding to pay the right tax amount
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2018-217 , Get Ready for Taxes: Here’s how the new tax law revised family tax credits
- IR-2018-167, Taxpayers with children, other dependents should check their withholding soon
- Tax Tips:
- Tax Reform Tax Tip 2019-15, Here’s how tax reform affects taxpayers who claim the child tax credit
- Tax Reform Tax Tip 2018-182, What’s new with the child tax credit after tax reform
The Tax Cuts and Jobs Act added a new credit. Dependents who can’t be claimed for the Child Tax Credit may qualify taxpayers for the Credit for Other Dependents. This is a credit of up to $500 per qualifying person. Parents and caregivers should do a Paycheck Checkup to determine how these changes could affect their tax situation.
Resources:
- News Releases:
- IR-2019-112, IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- Tax Info to Share:
The Tax Cuts and Jobs Act nearly doubled standard deductions and changed several itemized deductions. Some individuals who formerly itemized may now find it more beneficial to take the standard deduction. This change could affect how much a taxpayer should have their employer withhold from their pay. Even those who continue to itemize deductions should check their withholding because of these changes.
Resources:
- News Releases:
- IR-2019-112, IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now
- IR-2019-111, IRS reminds taxpayers to adjust tax withholding to pay the right tax amount
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2018-230, Get Ready for Taxes: Tax reform changes likely to reduce number of taxpayers who itemize
- IR-2018-222, IRS provides tax inflation adjustments for tax year 2019
- IR-2018-127, Law change affects moving, mileage and travel expenses
- IR-2018-122, IRS issues notice on state and local tax deductions
- IR-2018-32, Interest on Home Equity Loans Often Still Deductible Under New Law
- IR-2017-210, IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017
- Tax Tips:
- Tax Reform Tax Tip 2019-73, All taxpayers should check their withholding ASAP
- Tax Reform Tax Tip 2019-73, All taxpayers should check their withholding ASAP
- YouTube Videos:
- Tax Info to Share:
A Paycheck Checkup is especially important for taxpayers with high incomes and complex returns because they are likely affected by more of the changes in the law than people with simpler returns. A Paycheck Checkup is also important for taxpayers who make quarterly estimated tax payments to cover other sources of income or those who are subject to the self-employment tax or alternative minimum tax.
Resources:
- News Releases:
- IR-2019-149, New IRS Tax Withholding Estimator helps workers with self-employment income
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019-105, IRS reminder: June 17 is next deadline for those who pay estimated taxes
- IR-2018-165, Taxpayers with high incomes, complex returns: Check withholding soon
- Tax Info to Share:
The Tax Cuts and Jobs Act made major changes to the tax law. Any of these far-reaching changes could affect refund amounts. The IRS encourages everyone, including those who typically receive large refunds, to do a Paycheck Checkup to make sure they have the right amount of tax taken out of their pay.
Resources:
- IR-2019-178, Get Ready for Taxes: Get ready today to file 2019 federal income tax returns
- IR-2019-112, IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now
- IR-2019-111, IRS reminds taxpayers to adjust tax withholding to pay the right tax amount
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2018-163, Got a big tax refund? Use IRS Withholding Calculator to boost take-home pay in 2018
Taxpayers who owed additional tax when they filed their last federal tax return can avoid another unexpected tax bill next year by doing a Paycheck Checkup.
Resources:
- IR-2019-178, Get Ready for Taxes: Get ready today to file 2019 federal income tax returns
- IR-2019-112, IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now
- IR-2019-111, IRS reminds taxpayers to adjust tax withholding to pay the right tax amount
- IR-2019-110, IRS Withholding Calculator can help workers have right amount of tax withheld following tax law changes
- IR-2019-108, IRS reminder: Get tax withholding right; do a Paycheck Checkup at least once every year
- IR-2019- 107, IRS continues campaign to encourage taxpayers to do a Paycheck Checkup; use Withholding Calculator to help get right amount for 2019
- IR-2018-145, Tax bill this year? Check withholding soon, avoid another one next year
You can use the results from the Tax Withholding Estimator to determine if you should:
- complete a new Form W-4, Employee’s Withholding Allowance Certificate, and submit it to your employer.
- complete a new Form W-4P, Withholding Certificate for Pension or Annuity Payments, and submit it to your payer.
- make an additional or estimated tax payment to the IRS before the end of the year.
Helpful Resources
Tax Withholding Estimator
Tax Reform
Withholding and Estimated Taxes
Forms
Partners and Stakeholders
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