The new Tax Cuts and Jobs Act (TCJA) is causing many taxpayers to ask themselves “Am I withholding enough taxes? Should I change my withholding?”
Think this might be important? The amount of federal and state taxes you withhold from each paycheck determines whether you’ll get a refund, break even, or owe taxes when you file your return. Want to eliminate surprises at tax time? You should probably review your withholdings and possibly change your Form W-4, Employee's Withholding Allowance Certificate.
The Internal Revenue Service (IRS) has created a IRS withholding calculator that every tax payer should check out. The process will take a few minutes to complete but will give you peace of mind, knowing if you are withholding enough from each paycheck. If analysis shows you are under withholding, you still have time to adjust the amount withheld by filling out Form W-4. The IRS Withholding Calculator and Instructions is here
If this seem too difficult, John S Turner & Associates can help. Send us an email and we can start the process making sure you are not surprised next January.