IRS Urges Paycheck Checkup; Tax Withholding May Need Adjustment

IRS Urges Paycheck Checkup; Tax Withholding May Need Adjustment

South Dakota Retailers Association  

IRS urges ‘Paycheck Checkup’ for key groups; tax withholding may need adjustment

Following the recent tax law changes, the Internal Revenue Service says it’s especially important for certain people to use the Withholding Calculator on to check if they are having the right amount of withholding.

Among the groups who should check their withholding are people who:

  • Belong to a two-income family.

  • Work two or more jobs or only work for part of the year.

  • Have children and claim credits such as the Child Tax Credit.

  • Have older dependents, including children age 17 or older.

  • Itemized deductions on their 2017 tax returns.

  • Earn high incomes and have more complex tax returns.

  • Received large tax refunds or had large tax bills for 2017.

Newly-revised estimated tax form and publication can help people pay the right amount:

The Tax Cuts and Jobs Act changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding.

The newly revised estimated tax package, Form 1040-ES is designed to help taxpayers figure these payments correctly.

A companion publication, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can help taxpayers determine whether they should pay estimated tax, such as those who have dividend or capital gain income, owe alternative minimum tax or have other special situations.

You'll find more business tax information on the Tax News From the IRS page on our website.

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