With major individual tax changes effective for 2018 under the Tax Cuts and Jobs Act, many employees have already noticed a change on their net paycheck. The question is whether or not the withholding amounts are correct.
The IRS has recently released tools to help employees determine whether withholding changes are sufficient for their personal situation. To get started, employees will need their most recent pay stub and their most recent tax filing. With this information, employees can check his/her withholding using the online withholding calculator, here.
The withholding calculator can also help employees determine if a new Form W-4 needs to be completed. If changes to withholding need to be made, the newly released withholding allowance form can be accessed here.
The resources above, available on the IRS website, help to protect taxpayers from having too little or too much tax withheld. Publication 505, Tax Withholding and Estimated Tax, is also expected to be updated in the upcoming months to assist taxpayers with more complex situations such as those that are self-employed.