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NEWS: Updated Withholding Calculator Now Available

The IRS has now completed updating its online withholding calculator that individual taxpayers can use to determine how many withholding allowances they should claim for 2018. There is also a new 2018 Form W-4, Employee’s Withholding Allowance Certificate. (Remember that the IRS had previously announced that taxpayers could use the old 2017 Form W-4, as modified in Notice 2018-14, until 30 days after the new form was issued.)

The calculator and new Form W-4 reflect the changes made by the Tax Cuts and Jobs Act, which increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions, and changed the tax rates and brackets, among other changes. These changes will affect 2018 returns, not 2017 returns.

Two-income families, taxpayers with two or more jobs or who only work part of the year, taxpayers who will claim the child tax credit, and those who itemized deductions in 2017 are the ones most likely to have a change in their tax situation, necessitating filing a new Form W-4 with their employers. If you fall into this category, we urge you to use the calculator and/or reach out to us for assistance.

IRS says it anticipates making further withholding changes in 2019. We’ll bring you those changes when they become available.