IRS New Withholding Calculator

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This is even more important this year because of recent changes to the tax law for 2018.
The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.
There are several reasons to check your withholding:
• Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
• At the same time, with the average refund topping $2,800, you may prefer to have less tax withheld up front and receive more in your paychecks.
If you are an employee, the Withholding Calculator helps you determine whether you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. You can use your results from the Calculator to help fill out the form and adjust your income tax withholding.
Plan Ahead: Tips For Using This Program
The Calculator will ask you to estimate values of your 2018 income, the number of children you will claim for the Child Tax Credit and Earned Income Tax Credit, and other items that will affect your 2018 taxes. This process will take a few minutes.
• Gather your most recent pay stubs.
• Have your most recent income tax return handy; a copy of your completed Form 1040 will help you estimate your 2018 income and other characteristics and speed the process.
• Keep in mind that the Calculator’s results will only be as accurate as the information you provide. If your circumstances change during the year, come back to this Calculator to make sure that your withholding is still correct.
• The Withholding Calculator does not ask you to provide sensitive personally-identifiable information like your name, Social Security number, address or bank account numbers. The IRS does not save or record the information you enter on the Calculator.
IMPORTANT NOTE: This Withholding Calculator works for most taxpayers. People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe self-employment tax, alternative minimum tax, the tax on unearned income of dependents or certain other taxes, and people with long-term capital gains or qualified dividends.

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IRS Withholding Calculator

To Change Your Withholding:

  • Use your results from this Calculator to help you complete a new Form W-4, Employee’s Withholding Allowance Certificate, and
  • Submit the completed Form to your employer as soon as possible. Withholding takes place throughout the year, so it’s better to take this step as soon as possible.

Special Note for 2019:  If you follow the recommendations at the end of this Calculator and change your withholding for 2018, the IRS reminds you to be sure to recheck your withholding at the start of 2019. This is especially important if you reduce your withholding sometime during 2018. A mid-year withholding change in 2018 may have a different full-year impact in 2019. So if you do not file a new Form W-4 for 2019, your withholding might be higher or lower than you intend. To help protect against having too little withheld in 2019, we encourage checking your withholding again early in 2019.

If you have additional questions about your withholding, consult your employer or Schutte & HIlgendorf, CPAs.

Schutte & Hilgendorf offers a broad range of professional accounting, tax, and audit services to individuals and businesses throughout Yavapai County and Northern Arizona. With over 40 years combined certified public accounting experience, we specialize in providing services to numerous industry specific areas, including non-profit organizations, homeowner’s associations and construction contracting. We also provide tax planning and preparation, sales tax payroll tax return preparation, ongoing accounting/bookkeeping, live payroll, and QuickBooks setup and training (QuickBooks Proadvisors). Given our small size, we can still provide a personal touch with professional expertise. Come in and see us anytime at 2086 Willow Creek Road, Prescott, Arizona or call us at 928-778-0079


A Warning for Taxpayers: per IRS “Report Phishing and Online Scams” website

 


A Warning for Taxpayers:  per IRS “Report Phishing and Online Scams”  website


Internet and telephone scams are a growing issue in the U.S. and we at Schutte & Hilgendorf spend a great deal of time and expertise protecting our clients and their information from theft and hackers.  We continually upgrade and update our systems, software, hardware and procedures to keep you and your information safe from predators.

 

However, we cannot protect the information you have on your own computers or information you may be asked to give out over the phone.  So we would like to help you to avoid the latest in predatory behavior:  IRS contact is never initiated by robocall, email, text messages or social media channel per information distributed by the IRS. 

 

If you have received any sort of communication from the IRS other than by letter from the U.S. Postal service, please do not interact with the communication.  Go to this link: https://www.irs.gov/privacy-disclosure/report-phishing and follow the suggested actions as per this IRS official website posting.

 

If you are uncertain about any communication you have received, please contact us or the IRS before responding.


Tax Exempt Organization Search Tool

Verify the Status of a Charity before you Make a Donation:

 

If you have found the charity you feel deserves your hard-earned money, but you are uncertain of the legitimacy of its charitable status, it is best to do a little research.  Some donations made to “charities” are non-deductible due to the organization’s lack of “charitable organization” status with the IRS.  IRS now has a tool to help you determine if your donation will indeed be deductible.  Following is the latest press release for IRS’s new search tool:

New Tool Provides More Information About Exempt Organizations

 

The IRS launched a new tool on IRS.gov that gives taxpayers fast and easy access to information about exempt organizations. The new Tax Exempt Organization Search replaces the EO Select Check tool.

Here are some things taxpayers will find when they use the new TEOS tool:

  • Images of an organization’s forms 990, 990-EZ, 990-PF and 990-T filed with the IRS. Initially, only 990 series forms filed in January and February 2018 will be available. New filings will be added monthly.
  • More information about exempt organizations than was previously available using EO Select Check.
  • A simplified search process.
  • TEOS is mobile friendly, which provides access to the search tool using smartphones or tablets.
  • Users can access favorable determination letters. These are issued by the IRS when an organization applied for and met the requirements for tax-exempt status. At first, a limited number of determination letters will be available. Eventually, determination letters issued since January 2014 will also be available.

Taxpayers can also use TEOS to find information previously available on EO Select Check. This includes whether an organization:

  •  Is eligible to receive tax-deductible contributions.
  • Has had its tax-exempt status revoked because it failed to file required forms or notices for three consecutive years.
  • Filed a Form 990-N annual electronic notice with the IRS; this applies to small organizations only.

Publicly available data from electronically-filed 990 forms is still available through Amazon Web Services.