IRS Updates Form W-4 and its
Withholdings Calculator for TCJA
Jackie Himes, CPA, Tax Manager
Focused on You. Dedicated to Your Success.
March 12, 2018

The IRS has updated the Employee's Withholding Allowance Certificate (Form W-4) and the withholding calculator (link to: ) for the Tax Cuts and Jobs Act (TCJA). 

Employees need to ensure that their withholdings are correct under TCJA. It is important that the right amount of tax is withheld each pay period. If too little tax is withheld, you could face penalties and fines. If too much tax is withheld, the IRS will have use of your money until you receive a refund next year. In either case, it is safer to err on the side of caution and invest a few minutes in a “withholdings checkup.”  

The withholding calculator will help you to identify your tax withholding and determine if you need to give your employer a new Form W-4. You can use your results from the withholding calculator to help fill out the form and adjust your income tax withholding. The IRS updated the withholding tables in January. Generally, taxpayers with simple tax situations can get a good idea of how much tax should be taken out of their paycheck from the withholding table. People with more complicated tax circumstances should talk to their tax advisor. 

As always, we are here to help. Feel free to call any member of our team at 610-828-1900. Or contact either Jackie Himes, CPA, tax manager at or myself
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).