The IRS recently released the 2018 W-4 with an accompanying Withholding Calculator. Although the IRS issues an updated Form W-4 annually, this year’s release was later than anticipated due to modifications that needed to be made in conjunction with the tax reform bill passed in December of 2017.
Employees are encouraged to use the Withholding Calculator to ensure they have the proper amount of taxes being withheld from each paycheck, particularly due to major changes made to tax law. “Withholding issues can be complicated, and the Calculator is designed to help employees make changes based on their personal financial situation,” said David Kautter, Acting IRS Commissioner. “Taking a few minutes can help taxpayers ensure they don’t have too little – or too much – withheld from their paycheck.”
Who should verify W-4 withholdings?
According to the IRS, those who are particularly encouraged to check their withholding amounts include:
- Two-income families.
- People with two or more jobs at the same time or who only work for part of the year.
- People with children who claim credits such as the Child Tax Credit.
- People who itemized deductions in 2017.
- People with high incomes and more complex tax returns.
What information do I need for the Withholding Calculator?
Although the Calculator does not ask for sensitive information such as name, Social Security number, address or bank account numbers, it will ask you to estimate:
- Tax filing information
- Values of 2018 income
- Tax deductions
- Number of children that will be claimed for applicable tax credits
The more accurate the information is, the better the Calculator will predict your anticipated income tax for 2018, along with their recommended withholding amounts. (As a reminder, withholding changes do not affect 2017 tax returns.)
How do I make changes to my withholdings?
If modifications need to be made to income tax withholdings, employees should complete a new Form W-4 and submit it to their Stratus.hr payroll rep. Remember: Stratus.hr employees can easily make adjustments to their W-4 via Stratus.hr Mobile at any time to avoid the hassle of paperwork.
Employees should check to make sure they have the proper amount of taxes being withheld from their paychecks, particularly with all the changes from tax reform. Changes can be made to their 2018 W-4 via Stratus.hr Mobile.