DO YOU NEED TO PERFORM A PAYCHECK CHECK-UP?
The Tax Act and Jobs Act made significant changes to the tax law, including changing the tax rates and brackets, increasing the standard deductions, eliminating personal exemptions, increasing the child tax credit and limiting or discontinuing certain deductions. These changes will affect your 2018 income tax returns that will be filed next year.
You probably noticed your paycheck suddenly got larger in late-February/early-March when the IRS adjusted the federal income tax withholding tables to reflect the reduction in the income tax rates. This was done to get the benefits of the lower tax rates into your pockets sooner. This is great, right? Who doesn't like more "take home" pay?
Well, not that I want to be a buzzkill, but, there may be several situations where you may want to review your federal income tax withholding, and you need to do it now!
If you were a seasonal employee, a part-time employee, worked more than one job, had a spouse who worked, changed jobs, or a change in your dependents, you will want to review your 2018 withholding. You will also want to perform a review if you claimed more than one dependency exemption in the past on Form W-4. If you fail to review your withholding, you may be in for an surprise when you file your 2018 return when your federal withholding is incorrect and you have a balance due.
A Paycheck Check-Up is a review of your federal income tax withholding. I will estimate from your pay stubs, your estimated income tax and the amount of tax withheld. If your withholding is projected to be insufficient, I will provide the steps necessary to complete a new Form W4 to provide to your employer.