For every new tax season that arrives, folks are always wondering whether or not their tax withholdings are adequately adjusted with their current income. In fact, this very moment is the most critical time to adjust your 2019 withholding. By using your 2018 tax return, you’ll discover if your tax withholding situation makes sense for your gross income.
Too many people never properly adjust their check withholding and then end up owing more taxes than expected. On top of this, if you’re someone who wants a larger paycheck and a smaller refund then it’s time for learning how you can adjust your withholding.
By using the IRS Withholding Calculator to do a Paycheck Checkup, you can adjust your withholding so that you might either receive the average tax refund of $2,800 or change it.
Whichever you decide, C&D delivers with the tax services you need.
Who Should Adjust Their 2019 Withholding
Each taxpayers’ proper withholding all depends on their individual situation. An annual Paycheck Checkup is a good idea every year. For some, adjusting your 2019 withholding is absolutely essential.
The IRS encourages folks to do a checkup if:
- Taxpayer adjusted their withholding in 2018
- Their refund was larger or smaller than expected
- Experienced significant life changes
- Owed more taxes than were actually withheld this year
Following the 2017 Tax Cuts and Jobs Act (TCJA), most people have been affected by these changes. It’s resulted in lower tax rates, increased standard deductions, suspension of personal exemptions, and more.
Tax situations with self-employment tax, alternative minimum tax, or taxes on your investments, require more comprehensive tax projections. C&D can help you determine the proper withholding or what estimated tax will be for the year.
Both ourselves and the IRS encourage doing an annual Paycheck Checkup. If you’re hoping for a different outcome on your 2019 withholding, organizing your tax information is absolutely essential. As a healthy reminder, there are only so many more payment periods left in a given year. The longer you wait, the more challenging adjusting your current withholding may become.
Additionally, the IRS is releasing a new draft Form W-4 that should make navigating the treacherous waters of tax withholding a more straightforward task for 2020.
Don’t have time or feeling lost? C&D’s tax professionals not only deeply understand the current tax code but also monitor the shifting dynamics. With the TCJA now in full effect, contacting C&D today for adequate tax relief may be the best option for your wallet.