That big tax return may have allowed you to pay bills, build your savings, or buy something you’ve wanted for some time. With passage of the Tax Cuts and Jobs Act in late 2017, the tax code changed, making potentially for an even rosier tax picture for some at the end of this year.
However, the IRS urges taxpayers to get a paycheck checkup to ensure you don’t encounter any surprises come time for tax filing early in 2019.
A paycheck checkup will help make sure your employer is withholding the correct amount from your paycheck. Go to https://www.irs.gov/individuals/irs-withholding-calculator for more information.
Here are some of the changes in the law that may affect your taxes:
- The act lowered tax rates and changed tax brackets.
- Standard deductions nearly doubled to $24,000 for joint filers and $12,000 for singles.
- The act eliminated personal exemptions.
- The child tax credit is larger.
- The act added a credit for dependents who can’t be claimed with the child tax credit.
The calculator may help you determine the best withholding level to suit your needs.
For more information about withholdings and other tax changes, go to https://www.irs.gov/newsroom/tax-reform-resources.
Other details may apply, and you can find more information on the IRS website.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Tip adapted from IRS.gov