The Internal Revenue Service (IRS) has released new versions of Form W-4 and its online withholding calculator to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December 2017. The IRS urges taxpayers to use these tools to make sure they have the right amount of tax taken out of their paychecks.
Among other things, the Tax Cuts and Jobs Act increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets.
Taxpayers who should consider checking their withholdings for 2018 include:
- Two-income families
- Taxpayers with two or more jobs at the same time or who only work for part of the year
- Taxpayers with children, who claim credits such as the Child Tax Credit
- Taxpayers who itemized deductions in 2017
- High-income taxpayers and those with complex tax returns
If changes to withholdings should be made as a result of these changes, the IRS withholding calculator gives employees the information they need to fill out a new Form W-4. Employees must submit the completed W-4 to their employers.
For more information on access to HR360, our Human Resource Support tool for your practice or information on employee benefits, please email firstname.lastname@example.org or call 800-637-4676.