IRS recommends ‘paycheck checkups’
KINGMAN – The Internal Revenue Service is recommending those who work multiple jobs or are employed only during the summer months perform a “paycheck checkup.”
According to an IRS press release, the Tax Cuts and Jobs Act has increased the standard deduction, eliminated personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed tax rates and brackets. That equates to a change in the way tax is formulated for most taxpayers.
“Checking and adjusting tax withholding as early as possible in 2019 is the best way to head off a tax-time surprise next year,” the IRS wrote in the release, adding that waiting to do a checkup can result in fewer pay periods to address withholdings should an adjustment be needed.
Because of those changes to the tax law, many taxpayers received refunds that were either larger or smaller than expected. Some even owed additional money after filing their 2018 returns. The IRS states that two-income families and people with more than one job could be vulnerable to being under- or over-withheld.
“For 2019, a Paycheck Checkup is especially important for taxpayers who adjusted their withholding in 2018, specifically in the middle or later parts of the year,” wrote the IRS in the release. “Doing a Paycheck Checkup can help determine the correct amount of tax for each of their employers to withhold.”
A paycheck checkup can be performed by going to https://www.irs.gov/ and clicking on the “Withholding Calculator” tab. The calculator helps taxpayers estimate their incomes, credits, and adjustments and deductions. They can also check if they have the right amount of tax withheld. The IRS recommends having a completed 2018 tax return and a recent pay stub when using the calculator. Taxpayers can then use that information to complete a new W-4 form.
Those who are self-employed and pay their taxes directly to the IRS are encouraged to make estimated tax payments during the year. Form 1040-ES, available at https://www.irs.gov/, will help taxpayers ensure they have figured those payments correctly. Those who have been married or divorced, bought a home or had a baby should also think about a paycheck checkup.
Remaining due dates for the 2019 tax year are June 17, Sept. 16, with the final payment due Jan. 15, 2020. People can go to https://www.irs.gov/payments to pay online.
Information provided by the Internal Revenue Service
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