Posts Tagged ‘tax withholdings’

Confused about how much to withhold from your paycheck?

Written on January 10th, 2020 by Jamesno shouts

Everyone remembers the 2018 tax year where payroll tax withholdings were messed up due to the tax law changes.  A lot of folks ended up owing tax due to not withholding enough throughout the year.

The IRS has completely changed the W-4 tax withholding form that you fill out for your payroll department.  The new form does not have the old number of exemptions that we are all used to, but instead has a dollar amount that you calculate to either increase or decrease tax withholding on each paycheck.

Best part is the IRS has a great tool to help you figure out if you will owe or get a refund and how to adjust accordingly.  It only takes a few minutes and all you need is the most recent copy of your paystub:   www.irs.gov/w4app

Best part is when you get the results you have the option to print out a new W-4 form with the changes already entered.

Time to adjust your tax withholdings?

Written on April 17th, 2018 by Jamesno shouts

As we wrap up the 2017 tax year and look forward to the tax cuts of 2018, many are wondering if they should adjust their withholdings?  In my small sampling statistic, about 85% of the clients I do taxes for will see a benefit from the 2018 Tax Cuts.  Those that are still earning a regular paycheck have the option of adjusting their current withholdings to keep more money throughout the year or simply wait and get a refund when they file next year.

Whether you did your own taxes or worked with a tax pro, you should have gotten an estimate on what your 2018 taxes would look like based on the new rules.  From there you can figure out if you need to adjust your withholding’s through your employer by submitting a new W4.

So how do you make the decision on what to put in your W4?  The IRS has a withholding calculator to help you get closer to your actual tax liability under the new rules here: https://www.irs.gov/individuals/irs-withholding-calculator 

Once you determine any changes you need to make, fill out a new W4 and hand in to your payroll department:  https://www.irs.gov/pub/irs-pdf/fw4.pdf

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