June 5, 2019
You should do a Paycheck Checkup using the IRS Withholding Estimator, even if you did one in 2018.
Things to know about withholding and why checking it is important.
- Employers generally withholds income tax from your paycheck and then pays it to the IRS.
- Pension or annuity income generally requires withholding.
- Form W-2 reflects your wages and any withholding.
- Income and the information on your Form W–4 determine the amounts your employer withholds.
- 2019 Form W-4 must specify a filing status and a number of withholding allowances.
- Changes to withholding now can head off a potential tax bill next year.
- Major life event occurrences or income changes should always make you check your withholding.