The Internal Revenue Service has released the updated Form W-4 (here) for 2018. Along with the W-4, they have released an updated Withholding Calculator to help taxpayers check their 2018 tax withholding following the Tax Cuts and Jobs Act that was passed in December 2017.
Changes to the tax law were made with the Tax Cuts and Jobs Act of 2017 that include increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets.
So as an employee what does this mean to you?
Due to the changes, we strongly suggest employees to check their paychecks to help ensure they are withholding the right amount of taxes for their own personal situation. Use the calculator the IRS has released and, as always, consult with your tax advisor. If you feel changes need to be made, fill out and submit a new W-4 to update your tax withholdings.
You can find the withholding calculator and detailed information regarding how to use it here: