Buzz
Over the past month or so, you may have noticed a small increase in your paycheck due to the recent tax cuts. As we’ve mentioned earlier, this means it’s a good idea to verify that your employer is withholding the correct amount from your wages. Thankfully, this process has become easier with the IRS’s new version of its withholding calculator.
According to the Tax Policy Center, middle-income earners can expect to take home roughly $900 more this year compared to 2017. While your employer should have adjusted your withholding accordingly, it’s always best to double-check. After all, you might end up owing money, or you could be holding on to more now than you need.
Here’s the information you’ll need to use the calculator:
Your income (and your spouse’s)
Your latest pay stub
Your contributions to tax-deferred retirement accounts, like a 401(k)
Your contributions to pre-tax plans such as health savings accounts, flexible spending accounts, long-term and short-term disability coverage, etc.
Your most recent tax return
Documents for any additional sources of income, if applicable
Simply answer the questions on the calculator, and it will guide you on how to complete your W-4. Afterward, update your information with your HR department, and you’ll be good to go.
The IRS withholding calculator.
