Tax Strategies & Credits

Is Your Paycheck Withholding Setting You up For a Surprise Next Tax Season?

by
Lee Reams II
on
3/20/2018
Is Your Paycheck Withholding Setting You up For a Surprise Next Tax Season?

Tax professionals nationwide are reporting payroll withholding problems where clients who are used to getting tax refunds are now on pace for a tax due when they file in 2019. This is because they have reduced their tax withholding too far after the "Tax Cuts and Jobs Act" rate changes.  

Taxpayers can use our payroll withholding calculator below to help straighten things out. For advanced users or tax professionals, we have developed a PDF payroll worksheet to help alter the current withholding rates to get the preferred result in 2019. The IRS also has a special section to plan for your W-4 withholding. Though people with complex tax situations should consult their tax professional. 

Here you may calculate your net pay or "take home pay." Take home pay is what is left from your wages after withholdings for taxes and deductions for benefits have been subtracted. Salaried employees can enter either their annual salary or earnings per pay period.

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Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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