Do Your Payroll Tax Withholdings Need Adjusting?
When you filed your 2018 federal income tax return, did you owe tax on your salary and wages? If so, you are not alone. The Tax Cuts and Jobs Act of 2017 brought in sweeping tax legislation that impacted all individual taxpayers in 2018. Numerous taxpayers are now scrambling to adjust their payroll tax withholdings to cover their deficiency so they are not stuck with a tax bill in the upcoming tax season.
We’ve got some good news that can assist you in this undertaking. The Internal Revenue Service Center announced they have released an updated tax withholding tool to make it easier for employees to accurately estimate the right amount of federal tax to have taken out of their pay.
With only a quarter of the year remaining, the IRS encourages taxpayers to use the estimator to ensure the right amount of tax is being withheld to avoid a surprise when you file next year. Keep in mind that if you adjust your payroll withholdings at any point during the year to “catch up” on your withholdings, you will want to re-adjust your withholdings at the beginning of the year by using this tax withholding estimator tool.
Check out the IRS Tax Withholding Estimator Tool here.