I like to save money. I pack a lunch for work, use cloth grocery bags, and shop smart. I pay bills on time and plan for retirement. All of which allows me an indulgence at the local coffee shop more often than not.
And when tax time comes around I have saved and am willing to pay my share. So of course I was interested in the impact of the new Tax Cuts and Jobs Act on my income (and my coffee habit).
The IRS always recommends employees check their withholding each year to make sure they’re having the right amount of tax withheld from their paychecks. This year it is most important that this is checked. Updates under the new law include sharp limits to itemized deductions and an overhaul of the tax withholding that applies to your wages.
I do not like surprises and this one could creep upon you so take the time right now to assess your own personal situation.
You should check if you:
- Are a two-income family.
- Have two or more jobs at the same time or only work part of the year.
- Claim credits like the child tax credit.
- Have dependents age 17 or older.
- Itemized deductions in 2017.
- Have high income or a complex tax return.
- Have a large tax refund or tax bill for 2017.
- How to Use the Withholding Calculator for Paycheck Checkup: English
- Paycheck Checkup: English | Spanish| ASL
- IRS Withholding Calculator tips: English | Spanish
- Do you need to fill out a new W-4?: English | Spanish | ASL
Other resources and general information
- Bookmark the IRS’s Tax Reform page on IRS.gov for the latest on tax reform topics.
- Subscribe now to IRS Tax Tips to get the IRS’s Tax Reform Tax Tips.
See IRS.gov/taxreform for more information.