Tax reform! Tax cuts! The headlines screamed these terms for months at the end of last year. And the Tax Cuts and Jobs Act did indeed change the way tax is calculated. So what does this mean to the average worker? It means it’s time to think about April 15, 2019. Yes, 2019. In the midst of scrambling to complete your taxes for the April 2018 deadline, you actually need to consider NEXT year. Donna Trujillo, Accountant for the City of Rifle, sent out an e-mail last week to City employees with some critical information.
“Tax reform has changed some of the federal income tax withholding amounts for 2018,” stated Trujillo. For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax withheld depends on two things. First, the amount you earn. Second, the information you put on your W-4, the Employee’s Withholding Allowance Certificate. That same W-4 you filled out on your first day of work and likely haven’t thought about since, but should think about now.
The IRS website has easy-to-use tools including the Withholding Calculator which will help you make sure you have the correct amount withheld from your paycheck. “Please take advantage of this aid so that you will not find out later in the year that you have not had enough taxes withheld from your check and have to pay,” implored Trujillo. “There is still plenty of time right now to try the Withholding Calculator provided by the IRS. Do not wait until the year is halfway over before checking.”
The calculator can be found at https://www.irs.gov/individuals/irs-withholding-calculator. You will need some information from this year’s filing to use the calculator which means that right now is the perfect time to check since you already have that documentation close at hand. Should you need to redo your W-4, the IRS website has printable documents you can fill out at home and submit to your employer. So take that extra ten minutes this tax season to avoid surprises next tax season. Thanks for the heads up Donna!
Media Contact: Kathy Pototsky 970-319-8288