What to do with the newly updated IRS withholding calculator
Posted on May 8, 2018
Why use the new calculator?
- This new calculator accurately reflects changes in the Tax Cuts and Jobs Act passed in December, 2017.
- With many of us seeing withholding changes in our paychecks, the IRS recommends taxpayers use the Withholding Calculator to do a “paycheck checkup.”
Is doing a check up really necessary?
Absolutely! Doing a checkup can help protect against having too little tax withheld — and facing an unexpected tax bill or penalty at tax time in 2019.
If you run the numbers, you may find you prefer to have less tax withheld up front and receive more in your paychecks. And that would reduce your tax refund next year.
Teipen, Selanders, Poynter & Ayres encourages everyone to check their withholding as soon as possible, but it’s especially important for the following group of taxpayers to use the Withholding Calculator to make sure they have the right amount of tax withheld:
- Two-income families
- People with two or more jobs at the same time or who only work for part of the year
- People who claim credits such as the Child Tax Credit
- People who claim older dependents, including children age 17 or over
- 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
Is using the online calculator secure?
Yes. The Withholding Calculator will not ask you for personally identifiable information, such as your name, social security number, address, or bank account numbers. Plus, the IRS will not save or record the information you enter in the calculator.
Got more questions? Ask us at Teipen, Selanders, Poynter & Ayres. We can help you verify any withholding or tax-related questions you may have.