We’re Halfway Through 2018, Have You Adjusted Your Paycheck Withholding?
by Norman Short, Partner, GSJones Law Group, P.S.
For the majority of us who earn a paycheck, last year’s tax bill made significant changes. If you didn’t take the time to make necessary adjustments in February, now is a great time to adjust your withholding to conform to the 2018 tax regulations.
As you know, it’s best to apply the Goldilocks Principle to your withholding. If the government keeps too much of your money, you can’t invest that extra money throughout the year. On the other hand, not giving the government its due throughout the year could result in a nasty penalty. So, it’s best to withhold the amount from your check that is “just right.”
However, what is just right? To determine the answer ask your employer for both a copy of your old W-4 and a blank copy. Add the same information for your spouse. Then use the calculator created by IRS to determine the amount of over- or underpayment. Once you know that information, fill out a new W-4 with information that will result in a “just right” result at the end of 2018.
There were many changes to the tax code that affect people whose financial situations are more complicated. I’m always happy to do a 30-minute look at your tax situation for just $50. Call for an appointment to see if I can save you some trouble or some money. 360-876-9221.
Norman Short has 25 years experience helping individuals and businesses with your tax planning, pass-through income, back tax representation and other tax issues.