Monday, January 15, 2018

2018 Employer Withhholding May Turn and Bite You

The New IRS withholding calculator will not be available until February, the old W4's will continue to be used despite no longer reflecting the new tax law and 2018 employer withholding may result in under withholding  resulting in higher taxes owed at year end and possible tax penalties, particularly if there is more than one income in the family, you work at more than one job during the year, and/or you have multiple jobs at the same time.

You will need to proactively monitor and review your withholding, including using the new
withholding calculator when it becomes available in February and running an estimated tax review as the year progresses.  This may be particularly important as the IRS 1036 notice has been revised at least once already.

While some lower income and middle income earners may see larger take home pay in 2018, the middle class lower taxes are temporary and will actually result in higher taxes in future years, particularly by 2023.

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