The Internal Revenue Service just launched a special week-long campaign encouraging taxpayers to do a Paycheck Checkup now to make sure they are having the right amount of tax taken out of their paychecks for 2019.
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, changed the way tax is calculated for most taxpayers. Most TCJA changes took effect in 2018. As a result, some taxpayers ended up receiving 2018 refunds that were larger or smaller than expected, while others unexpectedly owed additional tax when they filed earlier this year. For that reason, taxpayers may need to raise or lower the amount of tax they have taken out of their pay throughout the year.
To help them do that, the IRS urges everyone to do a Paycheck Checkup using the Withholding Calculator available on IRS.gov.
Who should do a Paycheck Checkup?
Though doing a Paycheck Checkup is a good idea every year, for many people, it’s even more important this year. This includes anyone who:
- Expected to owe less tax or get a bigger 2018 tax refund.
- Has a major life change this year such as having a child, has a dependent older than 17, or has a relative who has become a dependent.
- Has a two-income family.
- Has two or more jobs at the same time or only works part of the year.
- Claims credits like the Child Tax Credit.
- Itemized deductions in the past.
- Has high income or a complex tax return.
If this may affect you in any way, please read more about how to do a Paycheck Checkup in this issued notification from the IRS by clicking this link.
Please contact us for further information or ask about how to perform a paycheck checkup.
