Get 2019 Withholding Right with Paycheck Checkup and 2018 Return

NSTPInternal Revenue Service (IRS), Underestimated Income Tax

USE 2018 Return and Paycheck Checkup to Get 2019 Withholding Right

The following was issued by the IRS to taxpayers in order to promote the Paycheck Checkup for 2019. The IRS continues to advocate that all employees verify their withholding to determine if they have sufficient taxes withheld. The Service is also in the process of redesigning the Form W4, which will be available as a pre-release in May for comments from the tax professional community. Millions of taxpayers filed a 2018 tax return in the last few weeks, making now a prime time for everyone to consider whether their tax situation came out as they expected. If it didn’t, they can use their recently finished 2018 return and the IRS Withholding Calculator to do a Paycheck Checkup and adjust their withholding. Checking and then adjusting their tax withholding can help make sure they don’t owe more tax than they are expecting. Usually they can also avoid a surprise tax bill and possibly a penalty when they file next year. At the same time, with the average refund more than $2,700, some taxpayers may choose to reduce their withholding to have a larger paycheck and smaller refund. Now is an ideal time to check withholding, since having a completed tax return … Read More