All taxpayers should check their withholding ASAP
All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year.
By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important:
- Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP.
- Taxpayers should also check their withholding when life changes occur. These changes include things like:
- Marriage or divorce
- Birth or adoption of a child
- Purchase of a home
- Chapter 11 bankruptcy
- New job or loss of job
- Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like:
- Capital gains
- Self-employment and gig economy income
- IRA distributions, including certain Roth IRAs
- Some life changes might affect a taxpayer’s itemized deductions or tax credits. The taxpayer should check their withholding if they experience changes to their:
- Medical expenses
- Interest expense
- Gifts to charity
- Dependent care expenses
- Education credit
- Child tax credit
- Earned income tax credit
The best way for taxpayers to check their withholding is to use the Withholding Calculator on IRS.gov.
Pay as You Go, So You Won’t Owe
Form W-4S, Request for Federal Income Tax Withholding from Sick Pay
Form W-4V, Voluntary Withholding Request
Share this tip on social media — #IRSTaxTip: All taxpayers should check their withholding ASAP. go.usa.gov/xmtQK
The post All taxpayers should check their withholding ASAP appeared first on Windham Region Chamber of Commerce.
Read More on WindhamChamber.com