{"id":11996,"date":"2018-03-03T08:00:48","date_gmt":"2018-03-03T14:00:48","guid":{"rendered":"http:\/\/taxprocenter.proconnect.intuit.com\/?p=11996"},"modified":"2018-03-03T08:00:51","modified_gmt":"2018-03-03T14:00:51","slug":"irs-releases-updated-withholding-calculator-and-new-form-w-4","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/irs-releases-updated-withholding-calculator-and-new-form-w-4\/","title":{"rendered":"IRS Releases Updated Withholding Calculator and New Form W-4"},"content":{"rendered":"

Tax professionals should know that the IRS recently released an updated Withholding Calculator on IRS.gov and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following passage of the\u00a0Tax Cuts and Jobs Act<\/a>\u00a0in December.\u00a0The IRS urges taxpayers to use these tools to make sure they have the right amount of tax taken out of their paychecks.<\/p>\n

\u201cFollowing the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they\u2019re having the right amount of tax withheld for their personal situation,\u201d said Acting IRS Commissioner David Kautter.<\/p>\n

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.<\/p>\n

If changes to withholding should be made, the\u00a0Withholding Calculator<\/a>\u00a0gives employees the information they need to fill out a new\u00a0Form W-4<\/a>, Employee\u2019s Withholding Allowance Certificate<\/em>. Employees will submit the completed W-4 to their employer.<\/p>\n

\u201cWithholding issues can be complicated, and the calculator is designed to help employees make changes based on their personal financial situation,\u201d said Kautter. \u201cTaking a few minutes can help taxpayers ensure they don\u2019t have too little \u2013 or too much \u2013 withheld from their paycheck.\u201d<\/p>\n

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.<\/p>\n

Steps to Help Taxpayers: Do a \u201cPaycheck Checkup\u201d<\/strong><\/p>\n

The IRS encourages employees to use the Withholding Calculator to perform a quick \u201cpaycheck checkup.\u201d Employees checking their withholding can help protect against having too little tax withheld, and facing an unexpected tax bill or penalty at tax time in 2019. It can also prevent employees from having too much tax withheld; with the average refund topping $2,800, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.<\/p>\n

The Withholding Calculator can be used by taxpayers who want to update their withholding in response to the new law,start a new job or have other changes in their personal circumstances in 2018.<\/p>\n

As a first step to reflect the tax law changes, the IRS released new\u00a0withholding tables<\/a>\u00a0in January. These tables were designed to produce the correct amount of tax withholding — avoiding under- and over-withholding of tax — for those with simple tax situations. This means that people with simple situations might not need to make any changes. Simple situations include singles and married couples with only one job, who have no dependents, and who have not claimed itemized deductions, adjustments to income or tax credits.<\/p>\n

People with more complicated financial situations might need to revise their W-4. With the new tax law changes, it\u2019s especially important for these people to use the Withholding Calculator to make sure they have the right amount of withholding.<\/p>\n

The groups who should check their withholding include:<\/p>\n