The Internal Revenue Service urges taxpayers who work multiple jobs or who may be adding summer employment to complete a “paycheck checkup” through the withholding calculator on the IRS.gov website.
Doing so will help them check if they are having the right amount of tax withheld from their paychecks, the IRS said in a May 23 announcement.
The Tax Cuts and Jobs Act made changes to the tax law. Among other things, the new law increased the standard deduction, eliminated personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets.
As a result, many taxpayers ended up receiving refunds that were larger or smaller than expected, while others unexpectedly owed additional tax when they filed their 2018 tax returns. Two-income families and people with multiple jobs may be more vulnerable to being under-withheld or over-withheld following these major law changes, the IRS said.
For more information on the “paycheck checkup” go to irs.gov