Does Your Paycheck Need a Checkup?

Written by Janet Smith, Regional Manager and Workforce Specialist in NVME’s Western Region 
Tax spelled out on scrabble pieces

What Happened?

At the beginning of this year, major changes to federal income tax rates went into effect across the country. These changes may have impacted your take-home pay and may also affect your 2018 taxes when you file in 2019.

Who Does it Impact?

If you fall into one of the following categories, it’s crucial that you check your tax withholding:

  • Two-income families
  • 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 older dependents, including children age 17 or older
  • People who itemized deductions in 2017
  • People with high incomes and more complex tax returns
  • People with large tax refunds or large tax bills for 2017

What to Do

To minimize your surprise at tax time, the IRS has created a Withholding Calculator to help people estimate the taxes they will owe in 2018. This tool will help prevent you from having too much or too little withheld from their paycheck.

To ensure that the Withholding Calculator provides you with accurate information, you’ll need your most recent pay stub and a copy of your most recent income tax return. These documents will help you estimate your 2018 income and the amount of any deductions and tax credits you plan to take.

Next Steps

For more information, visit irs.gov or watch this video. In addition, check out the ASL version of the video.

Looking for more money management tips?  Check out our upcoming tuition-free workshops and classes near you!