Time for a Mid-Year Paycheck Checkup, June 13, 2019

The IRS has released a reminder that taxpayers should conduct a mid-year summer paycheck checkup to ensure that the appropriate amounts are being withheld from their paychecks or paid as estimated taxes in light of tax reform's significantchanges. Because of the changes, many taxpayers received smaller refunds than expected for the 2018 tax year and some even owed an unexpected tax liability. A paycheck checkup can help avoid repeating those scenarios. In general, two-income households, and those with more than one job or self-employment income should pay especially close attention to their withholding.The IRS.gov website provides a withholding calculator that taxpayers can use to check their withholding depending upon their specific financial circumstances. If the taxpayer determines that a change is necessary, he or she can submit a new Form W-4 to the employer to change withholding allowances or specify a flat-dollar withholding amount. For more information on changes to the personal exemption that impact many taxpayers' withholding amounts, visit Tax Facts Online.