An informative article on the United Way blog has some great information about why it’s important to take a quick look at your paycheck right now. (See the original blog post, here: Does Your Paycheck Need a Checkup?)
Most notable from the post, is this: The IRS has created a Withholding Calculator to help people estimate the taxes they will owe in 2018, because who wants to have too much or too little withheld from their paycheck?
If you fall into one of the following categories, it’s a very good idea to check your withholding:
- Two-income families
- People working two or more jobs or who only work for part of the year
- People with children who claim credits such as the Child Tax Credit
- People with older dependents, including children age 17 or older
- People who itemized deductions in 2017
- People with high incomes and more complex tax returns
- People with large tax refunds or large tax bills for 2017
To ensure that the Withholding Calculator provides you with accurate information, you’ll need:
- your most recent pay stub and
- a copy of your most recent income tax return
These documents will help you estimate your 2018 income and the amount of any deductions and tax credits you plan to take.
For more information, visit www.irs.gov or watch this video