IRS Updates W-4 Form And WHT Calculator
by Mike Godfrey, Tax-News.com, Washington
01 March 2018
The Internal Revenue Service (IRS) on February 28, 2018, released an updated Withholding Calculator and a new version of Form W-4 to help taxpayers check their 2018 tax withholding, following the passage of the Tax Cuts and Jobs Act in December.
The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and brackets.
"Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they're having the right amount of tax withheld for their personal situation," said Acting IRS Commissioner David Kautter.
If changes to withholding should be made, the Withholding Calculator gives employees the information they need to fill out a new Form W-4, Employee's Withholding Allowance Certificate. Employees will submit the completed W-4 to their employer.
"Withholding issues can be complicated, and the calculator is designed to help employees make changes based on their personal financial situation," Kautter said. "Taking a few minutes can help taxpayers ensure they don't have too little – or too much – withheld from their paycheck."
The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year, the IRS said.
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