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Taxpayers who support dependents should check their withholding now Taxpayers who support dependents that can’t be claimed for the child tax credit should head over to the Withholding Calculator on IRS.gov and do a paycheck checkup ASAP. They can use the calculator to make sure they are having their employers withhold the right amount of tax from their paychecks this year. The Tax Cuts and Jobs Act, which was passed last year, added a new tax credit: the credit for other de...pendents. This new credit is just one law change that can affect a family’s tax situation this year. So, checking and adjusting withholding now is important to do because it can prevent an unexpected tax bill and even penalties next year at tax time. The Credit for Other Dependents is available for dependents for whom taxpayers cannot claim the newly expanded Child Tax Credit. These dependents may include dependent children who are age 17 or older at the end of 2018, or parents or other qualifying relatives supported by the taxpayer. Families with qualifying children under the age of 17 should first review their eligibility for the expanded Child Tax Credit, which is larger. The new credit: Offers up to $500 per eligible dependent. Begins to phase out at $400,000 for joint filers, and $200,000 for other taxpayers. If a taxpayer needs to adjust their paycheck withholding amount, doing so sooner rather than later means there’s more time for withholding to take place evenly throughout the year. Waiting until later means there are fewer pay periods to make the tax changes. The Withholding Calculator is the most accurate way for most taxpayers to help determine their correct withholding amount. The tool allows taxpayers to enter their expected 2018 income, deductions, adjustments and credits including the new credit for other dependents. For information about how to use the calculator and how to change withholding, taxpayers can check out the IRS Tax Reform Tax Tips on IRS.gov. Taxpayers may also need to determine if they should make adjustments to their state or local withholding. They can contact their state's department of revenue to learn more.

IRS urges taxpayers with high income, complex returns to check withholding The IRS urges high-income taxpayers and those with complex tax returns to complete a paycheck checkup. Doing so will help them see if they are having the correct amount of taxes withheld from their paychecks for the rest of this year. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help these taxpayers do their checkup. The Tax Cuts and Jobs Act, which was p...assed last year, brought many tax law changes. With that in mind, a checkup is important for taxpayers with high incomes and complex returns because they are often affected by more of these changes than someone with a simpler return. Here are some of the law changes that could affect these taxpayers: Changes to tax rates and brackets. Expansion of the child tax credit. The standard deduction nearly doubled to $24,000 for joint filers and $12,000 for singles. A $10,000 cap on deductions for state and local property, sales and income taxes. New limits on deductions for some mortgage interest and home equity debt. Higher limits on the percent of income a taxpayer can deduct as charitable contributions. No deductions for miscellaneous expenses. In prior tax years, these had to exceed 2 percent of a filer’s income to qualify. These included investment expenses and unreimbursed employee expenses such as travel, meals, entertainment and uniforms. In the past, high-income taxpayers often found more benefit in itemizing than using the standard deduction. After these tax law changes, people should revisit their options. It may be valuable for some people who used to itemize to determine whether they will continue itemizing or take the standard deduction. If a taxpayer checks and finds they need to adjust how much tax is withheld from their paycheck now, they can prevent an unexpected tax bill and penalties next year at tax time. Taxpayers need to adjust their withholding as soon as possible for an even withholding amount throughout the rest of the year. Employees can use the results from the Withholding Calculator or Publication 505 to help determine if they should complete a new Form W-4, Employee’s Withholding Allowance Certificate, and what information to include. Taxpayers also need to determine if they should make adjustments to their state or local withholding. They can contact their state's department of revenue to learn more

After filing tax returns, many people put taxes far out of their mind. However, taxpayers who received a large tax refund this year should think about taxes againand the sooner the better. The IRS urges these taxpayers to visit the Withholding Calculator on IRS.gov and do a paycheck checkup. Doing so will help them make sure their employers are withholding the correct amount of taxes from their paychecks. Most taxpayers receive refunds averaging around $2,800. Taxpayers wh...o receive large refunds could receive more of their money throughout the rest of this year, rather than waiting until they file their tax return next year. The Tax Cuts and Jobs Act was passed last year, and it included many tax law changes. Taxpayers who calculate their tax payments throughout the year in order to receive a refund at tax time should check to see how the new tax law affects them. A paycheck checkup can help taxpayers apply the new law changes to their situation. Here are some of the changes that affect taxpayers who received a refund this year, but also many other people: The law reduced tax rates and changed tax brackets. The standard deduction nearly doubled. The new rules raise the standard deduction to $24,000 for joint filers and $12,000 for singles for 2018. Many taxpayers who previously itemized their deductions will find the standard deduction is now of bigger benefit. The law removed personal exemptions. The child tax credit is bigger and the phaseout amount is higher. The law added a new tax credit for dependents who can’t be claimed for the child tax credit. The law limited or discontinued certain deductions. The calculator can help navigate each tax situation to make sure the amount withheld best fits the need of every taxpayer. It can help taxpayers decide if getting more money in each paycheck could make more financial sense than getting a refund at tax time next year. Adjusting withholding amounts now can also prevent having too little tax withheld, resulting in an unexpected tax bill next year. For information about how to use the calculator and how to change withholding, taxpayers can check out the IRS Tax Reform Tax Tips on IRS.gov. Taxpayers may also need to determine if they should make adjustments to their state or local withholding. They can contact their state's department of revenue to learn more.

Taxpayers who owed tax this year should check their withholding soon Taxpayers who owed additional tax when they filed their federal return earlier this year should do a paycheck checkup as soon as possible. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help these taxpayers do a checkup and avoid another possibly bigger tax bill next year. Following the Tax Cuts and Jobs Act, which was passed last year, there are many changes to ...the tax law that could affect these taxpayers. Doing a checkup now will help them make sure their current tax withholding is in line with their 2018 tax situation. Here are some things for these taxpayers to keep in mind: These taxpayers may not have had enough taxes withheld from their pay throughout 2017, causing them to owe in 2018. If they continue to have too little withheld from their paychecks the rest of this year, they could find themselves in the same situation again next year. They might even end up with a larger tax bill when they file their 2018 return next year. It’s important to remember that if a taxpayer underpays their tax too much, penalties and interest can apply. The Withholding Calculator can help taxpayers apply the new law to their situation. The results from the calculator can help them make an informed decision about whether to change their withholding this year. These taxpayers need to adjust their withholding as soon as possible for an even withholding amount throughout the rest of the year. Waiting means there are fewer pay periods to withhold the necessary federal tax, which could have a bigger effect on each paycheck. Taxpayers with more complex situations might find that using Publication 505 is a better option for figuring their withholding than using the Withholding Calculator. Publication 505 works better for employees who owe self-employment tax, the alternative minimum tax, or tax on unearned income from dependents. It can also help those who receive non-wage income such as dividends, capital gains, rents and royalties.

Just a reminder because this is happening more and more often. -Here’s how taxpayers can protect themselves from scammers- Knowledge is power, especially when it comes to avoiding tax scams. Here’s what taxpayers need to know to determine whether an encounter in person, over the phone or by email is an imposter or an actual IRS employee:... The IRS Does Not: Call to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card or wire transfer. Demand taxpayers pay taxes without the opportunity to question or appeal the amount owed. Threaten to bring in local police, immigration officers or other law enforcement to have someone arrested for not paying. Threaten to revoke someone’s driver’s license, business licenses or immigration status. The IRS Does: In general, first mail a bill to any taxpayer who owes taxes. Normally initiate contact with taxpayers through mail delivered by the United States Postal Service. Present official identification when visiting a taxpayer. Taxpayers have the right to see these credentials, and if they would like the representative will provide them with a dedicated IRS phone number for verifying the information and confirming their identity. Call or visit a home or business under certain circumstances. This includes when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or criminal investigation. Even then, taxpayers will generally receive several letters from the IRS in the mail first. Assign certain cases to private debt collectors, but only after written notice is given to the taxpayer and their appointed representative. Offer several payment options. Payment by check should be payable to the U.S. Treasury and sent directly to the IRS, not a private collection agency.