IRS Urges Taxpayers to Check Withholdings in Wake of Tax Cuts and Jobs Act
Friday, June 21, 2019
The Internal Revenue Service (IRS) is strongly encouraging taxpayers to complete a “Paycheck Checkup” to ensure the correct amount of taxes are being withheld from paychecks to avoid being caught off guard with a large tax bill when the 2020 filing season rolls around.
The Tax Cuts and Jobs Act made changes that affect taxpayers such as increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and brackets. If changes to withholding are needed, the Withholding Calculator gives employees information needed to fill out a new Form W-4, Employee’s Withholding Allowance Certificate.
The IRS stresses the importance of using the Withholding Calculator on IRS.gov for the following individuals:
- Two income families
- People with two or more jobs at the same time or who only work for part of the year
- People with children who claim credits such as the Child Tax Credit
- People who itemized deductions in 2017
- People with high incomes and more complex tax returns
More information is available in the special Withholding Calculator Frequently Asked Questions.