2018 Income Tax Withholding

2018 Income Tax Withholding

This is a reminder that the 2017 Tax Cuts and Jobs Act (TCJA) changed federal income tax rates and brackets, among other things, beginning in 2018. New IRS withholding tables were put into effect in late January.

Depending on your specific tax situation, you might owe additional tax when you file your 2018 income tax return, even if you normally receive a tax refund from the IRS at year-end.

The IRS offers an online “W-4 Calculator,” at https://www.irs.gov/individuals/irs-withholding-calculator. This calculator can help you check your tax withholding at any point in the year, compared to your total expected 2018 tax liability. It is important to do this as early as possible in the year to allow a smaller adjustment (if needed) during the balance of the year.

Although the IRS did not require all employees to file a new Form W-4 for 2018, for some people it may be advisable. The TCJA made many other changes that could affect your 2018 income taxes.

To update your withholding allowances, see the IRS 2018 Form W-4, Employee’s Withholding Allowance Certificate, and related instructions, which you can find at www.irs.gov/W4.

For questions regarding your personal tax situation, talk with your tax advisor, or visit www.IRS.gov.

Chris Blanchard