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Vol 49; IRS RELEASES NEW FORM W-4 AND UPDATED WITHHOLDING CALCULATOR

Posted by Admin Posted on Sept 12 2018
IRS RELEASES NEW FORM W-4 AND UPDATED WITHHOLDING CALCULATOR


Written by: Natasha Swan, Executive Assistant and Payroll Specialist


The IRS has released a new version of Form W-4 and an updated Withholding Calculator on its website, to help taxpayers check their 2018 withholding in light of changes made by the “Tax Cuts and Jobs Act”. The IRS has also issued a series of frequently asked questions (FAQs) on the withholding calculator.

The Tax Cuts and Jobs Act made major tax law changes for individuals, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and brackets, effective for tax years beginning after December 31, 2017 and before January 1, 2026.

On January 11, 2018, the IRS issued 2018 withholding tables that reflect the Tax Cuts and Jobs Act. Employers were instructed to begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018.

The updated withholding tables are designed to work with existing W-4s that employers have on file, but many taxpayers (such as those with children or multiple jobs, and those who itemized deductions under prior law) are affected by the new law in ways that can't be accounted for in the new withholding tables. The IRS is encouraging taxpayers to use the Withholding Calculator to make sure they have the right amount of taxes withheld and fill out a new Form W-4 if any changes need to be made to their withholding and submit to their employer.

The withholding changes do not affect taxpayer’s 2017 income tax returns due this April 2018. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.

 

 
IMPORTANT TAX DATES TO REMEMBER


We want to remind you of important tax due dates and deadlines that are just around the corner. In addition to these dates please keep in mind that information provided to our firm for 1040 preparation on or after March 23th 2018 will receive an extension.

Here is a recap of important dates to keep in mind as 2018 progresses:

  • March 15, 2018 - Form 1065 and 1120-S
  • March 23, 2018 - Deadline to have individual tax prep info to Becker and Rosen
  • April 17, 2018 - Form 1040, 1041, and 1120, unless extended
  • April 17, 2018 - 2018 1st quarter estimate payment
  • June 15, 2018 - 2018 2nd quarter estimate payment
  • September 17, 2018 - 2018 3rd quarter estimate payment
  • September 17, 2018 - Form 1120-S and 1065, if extended
  • October 1, 2018 - Form 1041, if extended
  • October 15, 2018 - Form 1040 and 1120, if extended
  • January 15, 2019 - 2018 4th quarter estimate payment
     
INTERACT WITH US ON THE WEB

Visit our website. Explore all the new features at
www.brcpallc.com and don't forget to like us on Facebook and LinkedIn to keep up with all the latest tax news.

 
Becker and Rosen CPAs, LLC Disclaimer

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions. 

Links to Third Party Websites
For your convenience, this newsletter may contain hyperlinks to websites and servers maintained by third parties. We do not control, evaluate, endorse or guarantee content found in those sites. We do not assume any responsibility or liability for the actions, products, services and content of these sites or the parties that operate them. Your use of such sites is entirely at your own risk.

 

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