The Internal Revenue Service is urging taxpayers to make sure they are withholding the right amount for taxes in the wake of the tax reform passed by Congress late last year.
“The IRS encourages every employee, including those who typically receive big tax refunds, to do a ‘paycheck checkup’ soon to ensure they have the appropriate amount of tax taken out of their pay,” the agency said in a statement this week.
The trump administration’s Tax Cuts and Jobs Act, enacted in December, made major changes to the nation’s tax laws. Among them:
- Reduced tax rates and changed tax brackets
- Limited deductions for state taxes and home mortgage interest
- Eliminated personal exemptions
- Increased the standard deduction
- Expanded and increased the Child Tax Credit
- Established a new credit for other dependents
The IRS offers an online withholding calculator to help taxpayers make sure they’re withholding the correct amount.
The agency said employees who need to complete a new Form W-4 to change withholding should submit it to their employer as soon as possible.
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