You've probably noticed a larger paycheck recently, thanks to the Tax Cuts and Jobs Act (TCJA) of 2017, but you may have to pay in next year if you don't check your withholding. The TCJA didn’t shift rates as much as some originally thought, and the effects will vary widely among filers.
Employers should urge their employees to review their form W-4's,
and update if necessary
Protect yourself from owing the IRS next year, and subjecting yourself to underpayment penalties, by verifying the accuracy of your personal allowances and withholdings claimed on your W4 with the 2018 Withholding Calculator.
It's ESPECIALLY important to check your form W-4 if:
you are a two-earner married couple with large itemized deductions
you claim more than two personal allowances (even if you don't itemize)
your personal allowances are for household members (or other dependents) age 17 or older
your income includes bonuses, commissions and certain stock options
Please don't hesitate to call our office with any questions.
While we are, of course, available to provide you with any business, accounting or tax services, the information contained herein is general in nature; any advice regarding those services should not be construed as tax advice and is not intended as a thorough, in-depth analysis of specific issues, a substitute for a legal, accounting or tax advice or opinion, nor is it sufficient to avoid tax-related penalties to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Strive Tax & Accounting, LLC or other tax professional prior to taking any action based upon this information. Strive Tax & Accounting, LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.