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August 29, 2018
The IRS is advising taxpayers to perform a “paycheck checkup” to avoid any surprises when they file their 2018 tax returns. This is particularly important for taxpayers who owed additional tax when their 2017 tax returns were filed earlier this year. The IRS has several tools which can aid these taxpayers in determining whether or not they have adequate tax withholdings to cover their tax liability and avoid owing additional tax with their 2018 tax returns. These tools include the IRS Withholding Calculator and Publication 505.
Due to the passing of the Tax Cuts and Jobs Act in late 2017, many taxpayers could be affected by the changes in the tax law. By checking their current year tax withholdings now, taxpayers can determine if their withholdings are enough to cover their 2018 tax liability.
Here are some points to remember from IRS Tax Reform Tax Tip 2018-103:
Give us a call if you need help evaluating your tax withholdings.