The Internal Revenue Service this week released an updated withholding calculator on IRS.gov and the 2018 version of the Form W-4. With the recent tax law changes we encourage you to update your withholding amounts to ensure they are accurate. This will protect yourself from having too little tax withheld and face an unexpected tax penalty when filing your 2018 return.
The new tax tables were implemented into the payroll systems no later than the end of February. You should have noticed a decrease in your Federal withholding due to the new tax law changes. But you still may need to consult with your Tax Professional to adjust and change your withholdings. Many items factor into your withholdings:
- Multiple jobs
- Two income families
- Child tax credit which has increased from $1,000 to $2,000 and higher AGI limits
- Itemized deductions-with the new standard deductions increasing this could affect your withholdings
- Complex tax situations