New tax laws are changing how much money employees should withhold from their wages. The Internal Revenue Service is encouraging taxpayers to do a “paycheck checkup” to make sure people have the right amount of tax taken out of their paychecks.
IRS representative, David Tucker says the new tax law could affect how much tax someone should have their employer withhold from their paycheck.
To help understand the changes, Tucker says taxpayers can visit the Withholding Calculator on IRS.gov.
The Withholding Calculator can help prevent employees from having too little or too much tax withheld from their paycheck.
The law increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets.
Among the groups who should check their withholding are:
· 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.
For more details on withholding issues, taxpayers are encouraged to visit IRS.gov.