ASAP: Taxpayers should check withholding

NSTPInternal Revenue Service (IRS), Paycheck Checkup

ASAP: Taxpayers Should Check Withholding

ASAP: Taxpayers should check withholding All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important: Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP. Taxpayers should also check their withholding when life changes occur. These changes include things like: Marriage or divorce Birth or adoption of a child Purchase of a home Retirement Chapter 11 bankruptcy New job or loss of job Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like: Interest Dividends Capital gains Self-employment and gig economy income IRA distributions, including … Read More

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

TAXPAYERS WITH HIGH INCOMES, COMPLEX RETURNS: CHECK WITHHOLDING SOON TO AVOID A YEAR-END TAX SURPRISE

NSTPIndividual Taxpayers, Internal Revenue Service (IRS), IRS Withholding Calculator, Uncategorized

The Internal Revenue Service is urging high-income taxpayers and those with complex tax returns to check their withholding soon to avoid an unexpected tax bill or penalty when they file their 2018 federal income tax return in 2019.

ABOUT FORM W-4V, VOLUNTARY WITHHOLDING REQUEST

NSTPInternal Revenue Service (IRS)

If you receive any government payments shown below, you may use this form to ask the payer to withhold federal income tax. This form covers: Unemployment compensation (including Railroad Unemployment Insurance Act (RUIA) payments), Social security benefits, Social security equivalent Tier 1 railroad retirement benefits, Commodity Credit Corporation loans, Certain crop disaster payments under the Agricultural Act of 1949 or under Title II of the Disaster Assistance Act of 1988 Dividends and other distributions from Alaska Native Corporations to its shareholders. Updated Form W-4V to elect the new rates, 7%, 10%, 12%, 22%, is available at:    https://www.irs.gov/forms-pubs/form-w-4v-voluntary-withholding-request

UPDATED 2018 WITHHOLDING TABLES NOW AVAILABLE; TAXPAYERS COULD SEE PAYCHECK CHANGES BY FEBRUARY

NSTPTaxpayer

The Internal Revenue Service has released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The updated withholding information, posted on IRS.gov, shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than February15, 2018. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables. Many employees will begin to see increases in their paychecks to reflect the new law in February. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or monthly. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This will minimize burden on taxpayers and employers. Employees do not have to … Read More