WASHINGTON: The U.S. Internal Revenue Service (IRS) will provide a free online, web-based information session in two languages on Thursday, March 28, 2019, to help people understand how to do a ‘Paycheck Checkup.’[the_ad id=”31605″]Doing a Paycheck Checkup means checking tax withholding using the IRS Withholding Calculator and making any necessary adjustments to avoid having too little or too much tax withheld from paychecks.
The webinar is part of a continuing effort by the IRS to share information with taxpayers and partners to help people review their tax withholding, especially if they have already filed and noticed a significant change to their tax refund or amount owed brought about by the Tax Cuts and Jobs Act (TCJA) enacted in 2017. The TCJA lowered tax rates, increased standard deductions, suspended personal exemptions, increased the Child Tax Credit and limited or discontinued deductions.
The IRS urges all taxpayers to do a “Paycheck Checkup” now so that if a withholding adjustment is needed, there is more time for withholding to happen evenly during the rest of the year. Waiting means there are less pay periods to withhold the necessary federal tax – so the change in withholding from each remaining paycheck will be more.
Reviewing withholding is especially important if people did a Paycheck Checkup in 2018 and adjusted their withholding during the middle or late in the year. Another review early this year can help make sure they’re having the right amount withheld for the rest of 2019.
The Withholding Calculator is an accurate, simple way for most taxpayers to determine their correct withholding amount. The tool allows taxpayers to enter their expected 2019 income, deductions, adjustments and credits – including the Child Tax Credit.