The IRS has published a new online tool for estimating tax withholdings. This tool – which is primarily designed for taxpayers who get all or nearly all of their taxable income from wages – is meant to help employees ensure that they’ve had enough withheld. After the Tax Cuts and Jobs Act, new withholding tables were issued, and many employees found that when they filed their 2018 tax returns, they either owed tax or had substantially smaller refunds than they were expecting. The estimator is available here: https://www.irs.gov/individuals/tax-withholding-estimator.
We’ve previously discussed the importance of regularly reviewing your withholdings on a regular basis. Clients with substantial amounts of non-W-2 income may want to consult us about either having additional withholdings or paying quarterly estimated tax payments.”