Apr. 26, 2018

Avoid a Tax Penalty Check your Withholding

The Tax Cuts and Jobs Act of 2017 eliminates exemptions for tax year 2018.   Check to make sure you have enough federal income tax withheld, or estimated tax paid before the end of the 2018 year.  Use the IRS withholding calculator at the following link:

https://www.irs.gov/individuals/irs-withholding-calculator

This calculator takes into account the new tax law and the 0 value exemptions in 2018. Have your most recent pay-stub or your most recent income statement , if your are self employed, to have accurate figures to plug into the calculator. After answering the questions , the calculator will show you what to do on your form W4 to owe the least amount of tax at the end of the year.

You can indicate you want extra federal income tax withheld by filing an updated form W4 with your employer.  If you are self employed adjust your next quarterly payment.