Everyone loves surprises, right?!? What if that surprise was a bigger tax bill next Spring? Not so much, huh? Don’t get caught owing more than you’d planned on when you file your Federal taxes.
According a recent the IRS newsletter, “The Tax Cuts and Jobs Act, passed in December 2017, made significant changes, which will affect 2018 tax returns that people file in 2019. These changes make checking withholding amounts even more important. These tax law changes include:
Increased standard deduction
Eliminated personal exemptions
Increased Child Tax Credit
Limited or discontinued certain deductions
Changed the tax rates and brackets
Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time."
Among the groups who should check their withholding are:
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 other dependents who can’t be claimed for the child tax credit, including children age 17 or older
People who itemized deductions on their 2017 tax return
People with high incomes and more complex tax returns
People with large tax refunds or large tax bills for 2017
Contact Morales Services today for your Federal withholding tune-up. We will review your current tax situation and see if you need to make a change NOW to avoid unpleasant surprises at tax time. Don't procrastinate and miss this opportunity to adjust your withholding and make an impact on your 2019 taxes.
BOOK A FREE CONSULTATION NOW and learn how we can check your tax withholding to make sure you have the right amount of taxes withheld from your paycheck.