July 9, 2019
Financially Speaking
Have you done your ‘Paycheck Checkup’ this year? It is a good idea to check that paycheck as early in the year as possible so if an adjustment is needed, there is more time for withholding to happen evenly during the rest of the year. Waiting means there are fewer pay periods to withhold the necessary federal tax.
The easiest way to do a Paycheck Checkup is to use the Withholding Calculator on IRS.gov. The Withholding Calculator can help taxpayers estimate their income, credits, adjustments and deductions more accurately and check if they have the right amount of tax withheld for their financial situation. When using the calculator, it’s helpful to have a completed 2018 tax return and a recent pay stub available.
Based on the Withholding Calculator’s recommendations, the taxpayer can then fill out and submit a new W-4 Form to their employer. For KSRE employees this can be done online. In many instances, this means claiming fewer withholding allowances or having an extra flat-dollar amount withheld from their pay.
Checking and adjusting tax withholding as early as possible in 2019 is the best way to head off a tax-time surprise next year.