If you haven’t taken into account tax changes, you may be in for a nasty surprise.
That’s because you may not be holding out enough of your paycheck to qualify for a refund next year, thanks to tax changes passed by Congress last year.
According to the Washington Post:
Sen. Ron Wyden (D-Ore.) and Rep. Richard Neal (D-Mass.) asked the GAO to review the revised federal tax withholding tables for 2018.
The overwhelming majority of people — 73 percent — will still be in a situation where too much is withheld, according to the GAO. Meanwhile, 21 percent of taxpayers might not be withholding enough from their paychecks to cover their tax bill.
There are some things you can do to lessen the likelihood of a big tax bill next year. They include reviewing your W-4 Employee’s Withholding Allowance Certificate, which can help you determine whether you’re paying too much or too little in income taxes. You’ll want to do that review soon, though. We’re already more than halfway through the year.
According to the Post:
Don’t be daunted by this task. If the number you get looks funky, go back through to make sure you answered the questions correctly. Or consult a tax professional.
If you regularly get a refund, you need to perform a paycheck checkup now.
To get a good sense of how tax changes affect you, consult the experts of Sterling Accounting.
Sterling Accounting stays up-to-date and well informed on all tax laws and legislation. That’s especially important this year, since changes in federal taxes are far-reaching.
Those changes will also impact businesses, and we can help you in that case as well.
Sterling Tax and Accounting Services are specialists in handling all forms of tax matters for small, medium and large businesses of all kinds. We also help businesses identify often overlooked tax deductions.