Update your W-4 where there is smoke, there could be fire.
Every year around this time, you should check the batteries in my smoke detectors. It’s one of those annual items to check. Just as there is a need to do those annual checkups, the passage of the 2017 Tax Cuts and Jobs Act (TCJA) has increased the need for our clients to go back and check their withholding strategy if they are receiving wages from their employers.
The TCJA made some changes to personal and dependent exemptions. It used to be that you received an exemption for yourself, your spouse, and your children/dependents. You could then claim the exemptions on your W-4 and your withholdings on your wages generally covered your tax bill. But the new law does not allow any exemptions. This change, along with some other law changes, required the IRS to update the withholding tables. This means that your W-4 that is on file with your employer, possibly from when you started working there 5 or 10 years ago, may or may not result in covering your tax liability.
We at RBCPA are ready to assist you in determining whether your tax withholdings will cover your liability next April or not. By planning today, you can avoid surprises tomorrow.
Give us a call or complete the following form and we’ll reach out to you.