IRS recommends to check your withholding’s. It is a good idea to check your withholding’s every year but for many taxpayer’s it is even more important to check withholding’s this year. The Internal Revenue Service encourages taxpayers to look at their tax withholding now to take charge of their tax situation and avoid a surprise at tax time next year. This includes anyone who:
- Expected to owe less tax or get a bigger 2018 tax refund.
- A major life change this year such as having a child,
- Dependent older than 17, or has a relative who has become a dependent.
- 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.
- High income or a complex tax return.
Anyone who needs to make a withholding change should do so as soon as possible. As this will allow withholding’s to spread evenly throughout the rest of the year. Also, for those who adjusted their tax withholding in the middle or later part of 2018, it is important to check again this year to make sure that over or under withholding is not occurring.
Withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things – the amount you earned and the information you put on W-4 Form.
Not sure if you withholding enough? Contact CD Tax & Financial today we can help!