The Tax Cuts and Job Act passed last year was the biggest change in tax law in the last 30 years. With the change in brackets, there came a change in withholding tables. Withholding tables are used to calculate federal tax withholding from your paycheck or retirement check. Recent studies by the Governmental Accountability Office estimate that 21% of taxpayers (roughly 30 million) aren’t withholding enough taxes from their pay this year.
Based on these findings, the IRS is warning employees and retirees to check their withholding to avoid a surprise tax liability this tax season. We encourage you to take a look ahead of time rather than being surprised. If you are comfortable checking for yourself, the IRS has a calculator you can use: https://www.irs.gov/individuals/irs-withholding-calculator.
Please feel free to contact us at 402-643-2333 if you would like assistance with this or you have any other questions.