It’s Time for a Paycheck Checkup

The Internal Revenue Service has released a new version of Form W-4 (the Employee’s Withholding Allowance Certificate) and an updated withholding calculator to help taxpayers adjust the amount of taxes that are withheld from their paychecks.

New tax law changes make it especially important for certain taxpayers to visit the Withholding Calculator on IRS.gov.

If you fit into one of these categories, you should use the Withholding Calculator for a paycheck checkup:

  • Two-income families.
  • People with two or more jobs at the same time or who only work for part of the year.
  • People with children who claim credits such as the Child Tax Credit.
  • People who itemized deductions in 2017.
  • People with high incomes and more complex tax returns.

If you need to make changes, the Withholding Calculator gives you the information you need to fill out a new Form W-4. (Click here for a printable copy of the newly updated W-4) Employees will submit the completed W-4 to their employer. Any withholding changes you make now do not affect 2017 tax returns due this month.

As a first step to reflect the tax law changes, the IRS released new withholding tables in January. These tables were designed to produce the correct amount of tax withholding — avoiding under- and over-withholding of tax — for those with simple tax situations. People with more complicated financial situations might need to revise their W-4.

For more information, check out Withholding Calculator Frequently Asked Questions.

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