Tuesday December 11, 2018
New IRS Withholding Calculator
Acting IRS Commissioner David Kautter stated, "Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they are having the right amount of tax withheld for their personal situation."
There are several groups of taxpayers who should use the new calculator to adjust their withholding. These include the following:
- Two income families
- Taxpayers with two or more jobs
- Families who claim the Child Tax Credit
- Taxpayers who itemized in 2017
- Upper-income single and married taxpayers
- Pay Stub - You will need your latest pay information from your workplace.
- Tax Return - Some calculator information will come from your 2017 or 2016 tax return.
- No Personally Identifiable Information - The withholding calculator does not ask for your name, Social Security Number, address or bank account number. Keep this in mind if a scammer sends you an email with a purported link to the IRS withholding calculator. Do not click on that link.
- Results - The withholding program will show your estimated income tax for 2018. It also displays the number of allowances you may enter on IRS Form W-4.
- New Form W-4 - You may download IRS Form W-4. You should fill it out and claim the correct number of allowances to adjust your withholding. This may be submitted to your employer who can adjust your amount of withholding. Most families and middle-income individuals will have a lower withholding rate and larger take-home amounts in 2018.