Be Prepared for Next Year’s Tax Return

2018 Tax Withholding CalculatorThe new tax law impacts all of us. Taking steps now to check your withholding can help avoid any unwelcome surprises at tax time next year.

The IRS has released a Tax Withholding Calculator to help you sort through the withholding issue. There is a new withholding worksheet as well at the end of the revised W-4 form. Federal employees have very high tax compliance rates and NTEU wants to be sure you are aware of the tools available to you so you have the right amount of tax withheld for your personal situation.

Why check your withholding?

  •  To protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
  • You may prefer to have less tax withheld up front and receive more in your paychecks.

The new tax law made significant reforms to the standard deduction, personal exemptions, the child tax credit, other deductions, tax rates and tax brackets. Depending on what the calculator may reveal, you might want to adjust how much federal tax is withheld from your paychecks for the rest of the year by submitting a new W-4 form.

To use the calculator, you will need:

  • Your most recent pay stubs.
  • Your most recent income tax return handy; a copy of your completed Form 1040 will help estimate your 2018 income and speed-up the process.

Using the withholding calculator takes just a few minutes and does not require you provide personal information like name, Social Security number, address or bank account number. The IRS does not save or record the information you enter on the calculator.

2018 Tax Withholding Calculator button

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s