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Taxpayers Should Check Their Payroll Withholdings ASAP

Taxpayers should review their paychecks as soon as possible. The Tax Cuts and Jobs Act has implemented changes that will impact their 2018 tax returns. So basically taxpayers cannot assume that their returns are going to shape up the same way they have prior years. The sooner the better when it comes to checking the withholdings on paychecks to determine if additional taxes need to be withheld.

The IRS has a “Withholding Calculator” on their website to assist taxpayers in determining if they need to make any changes. The calculator allows the taxpayer to enter their expected 2018 figures to determine if their withholdings are correct. The calculator can be found at the following address:

https://www.irs.gov/individuals/irs-withholding-calculator

Depending on the complexity of each personal situation, taxpayers may benefit from getting tax planning assistance from their accountant in order to make 2018 projections. If the withholdings are low for the year the accountant can then make a ballpark projection of what will be owed at the end of the year and have the taxpayer send in estimated tax payments to make up what is needed.

Please consult your tax advisor on all the above information.

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