You Can Use Your 2018 Tax Return To Do A Withholding Checkup

Millions of people have filed their 2018 tax return, making this a prime time to consider whether their tax situation came out as expected. If not, you can use your finished 2018 return and the Tax Withholding Estimator to do a Paycheck Checkup and, if needed, adjust your withholding. Having your 2018 return handy can make it easier for you to estimate deductions, credits and other amounts for 2019. Performing a Paycheck Checkup is a good idea for anyone who:

 

  • Adjusted their withholding in 2018, especially those who did so later in the year.
  • Owed additional tax when they filed their tax return this year.
  • Had a refund that was larger or smaller than expected.
  • Had life changes such as marriage, childbirth, adoption, buying a home or income changes.

Since most people are affected by the Tax Cuts and Jobs Act all taxpayers should check their withholding. They should do a checkup even if they did one in 2018. This especially includes taxpayers who:

 

  • Have children and claim credits such as the Child Tax Credit.
  • Have older dependents, including children age 17 or older.
  • Experienced changes to itemized deductions this year.
  • Itemized deductions in the past.
  • Are a two-income family.
  • Have two or more jobs at the same time.
  • Only work part of the year.Have high income or a complex tax return.

This Tax Withholding Estimator works for most taxpayers. Those with more complex situations may need additional assistance.

You can use the results from the Tax Withholding Estimator to see if you need to complete a new Form W-4, and submit it to your employer. In some instances, the calculator may recommend having an additional flat-dollar amount withheld each pay period. You would give this form to your employer and not to the IRS.