Yes, you read that right.
The new tax bill, named the Tax Cuts and Jobs Act, will have sweeping tax effects for everyone. Withholding rates were changed to reflect the new tax law, but many people have not reviewed their withholding to make sure it is correct.
The IRS “urges taxpayers to check withholding now to avoid tax surprises later”. Visit www.irs.gov/payments/tax-withholding to learn if you need to make changes to your W-4.
Those taxpayers who the IRS is especially encouraging to check their withholding include:
- Two-income families
- Have two or more jobs at the same time
- Work only part of the year
- Claim credits
- Have dependents 17 or older
- Itemized deductions in 2017
- Have a high income
- Have a complex tax return
Checking your withholding now can help prevent a large tax bill come tax season. If you would like some help, please call. We are Stapley Accounting, your QuickBooks and tax professionals.