Helps Taxpayers Better Predict 2018 Tax Allowances
The recent Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. As a result of the changes, some taxpayers may end up owing more money to the IRS in 2019.
The IRS suggests taxpayers use its new Withholding Calculator on IRS.gov to make sure they have the correct amount of tax taken out of their 2018 paychecks. This is especially important for taxpayers who have previously filed itemized returns and those with annual household earnings between $200,000 and $500,000.
If changes to withholding should be made, taxpayers should fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees will submit the completed W-4 to their employer.
Reach out to one of our tax professionals with questions or to discuss how the many other changes in the Act could affect your particular tax situation, 859-331-1717.