New tax law definitely requires me to make a change. It might be doing the same for you.
You’ve heard the stories about reduced tax refunds this year. Since we get a few bucks extra in each paycheck, it adds up over the course of a year to reduce any potential refund. And if you’ve had any other life changes this past year, like I have (I sold my home and rent now), there could be a much greater swing away from having enough withheld from your check to cover your annual tax debt.
I used the IRS withholding calculator and found that, with the new tax law and my personal changes this year, that I would be $4000 short on withholding by the end of 2019, if I don’t change my withholding rate. So I’m changing!
Even if your personal situation hasn’t changed, it might be worth trying the estimator just to see how you’re doing before we get too far into the year. Click here to use access the IRS withholding calculator.