The IRS is encouraging everyone to use their new withholding calculator to perform a quick “paycheck checkup”. This is even more important this year because of recent changes to the tax law for 2018.
The IRS a new version of form W-4 for 2018. The new W-4 and calculator reflect changes to withholding enacted by the Tax Cuts and Jobs Act. Changes include increasing the standard deduction, removing personal exemptions, increasing child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. Employees should use the IRS Withholding Calculator to find out how many allowances they should claim. Avoid a serious overpayment or underpayment by adjusting withholding as soon as possible. This gives employees more time to catch up to the correct 2018 withholding, if needed.
To access the new IRS Withholding Calculator please visit: https://www.irs.gov/individuals/irs-withholding-calculator.