Paycheck Checkup

Taxes may not be due until April, but the IRS is urging taxpayers to do a "paycheck checkup" to make sure that the right taxes are being taken out of their paychecks. Recent major tax legislation, the Tax Cuts and Jobs Acts (TCJA), will affect individuals, businesses, as well as tax exempt and government entities. For more information you can visit the Tax Reform page on IRS.gov.

Using the IRS Witholding Calculator to estimate your 2018 income tax may help prevent an unexpected tax bill or penalty.The Withholding Calculator compares that estimate to a taxpayer’s current tax withholding and can help them decide if they need to change their withholding with their employer. For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things: the amount you earn and the information you give your employer on Form W–4.

The IRS recommends everyone check their witholding, but it's especially important to check for the following groups:

  • Two-income families.
  • People working two or more jobs or who only work for part of the year.
  • People with children who claim credits such as the Child Tax Credit.
  • People with older dependents, including children age 17 or older.
  • People who itemized deductions in 2017.
  • People with high incomes and more complex tax returns.
  • People with large tax refunds or large tax bills for 2017.

When using the calculator, it’s helpful to have a completed 2017 tax return available. 

More details about the Withholding Calculator and the new 2018 withholding tables can be found on the Frequently Asked Question pages:

The IRS also has YouTube videos on how to use the Witholding Calculator, paycheck checkup, Witholding Calculator tips, and filling out a new W-4.

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