Why This Year Might Be Worse Than Last Year


        One of the big surprises created by the Tax Cuts and Jobs Act (TCJA) was the disappointment many Taxpayer’s received when it came to their refund, or lack thereof. As many now understand, the tax savings that were promoted can be found in each paycheck. As a result, their tax refund was smaller, or it even an unexpected tax bill. This led to strong reactions and encouragement to do a Paycheck Checkup to make sure the next year would not turn out the same.

          Next year has arrived. Did you make the necessary changes to your withholdings? If not, the problem could be magnified. In 2018, the new withholdings table was only in effect from about February or March. This means it did not cover the entire year. All of 2019 was covered, so if the withholding was too little, the amount owed will be greater. Nothing can change that now. But making changes now will keep you from dealing with the same problem next year. The Internal Revenue Service (IRS) has released a new Form W-4 which reflects the changes to withholding made by the TCJA. Consider talking to a Qualified Tax Professional to determine if this is the right step for you.

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