Is your employer withholding the correct amount of federal income tax from your paycheck? As you prepare your 2019 tax return you may discover that your employer is withholding too much or too little tax. If you are not having enough tax withheld from your paycheck you may owe Uncle Sam at tax time. If you are having too much withheld you may be getting too little money in your pocket each paycheck. The IRS has revised their tax withholding tables to incorporate the changes contained in the Tax Cuts and Jobs Act (TCJA). The TCJA changed or eliminated many popular deductions, raised the standard deduction, and lowered some tax rates. You can use the IRS Tax Withholding Estimator to determine the right amount of withholding for 2020. https://www.irs.gov/individuals/tax-withholding-estimator The IRS recommends everyone use the Tax Withholding Estimator to perform a “paycheck checkup”. They note it may be particularly important if you have recent changes in your life, such as marriage, the birth of a child, adoption or bought a home. It’s free to use and may help you avoid unpleasant surprises at tax time next year.
George J. Eigenhauser Jr. is an attorney at law, licensed in the state of California since 1979. He has served on the Winn Board of Directors and as CFA liaison to Winn for more than 10 years. His expertise in the area of wills, trusts and estate planning allows him to assist donors with planned giving decisions. He is also the legislative coordinator for the Cat Fanciers’ Association, Inc. and has served on the CFA board for 15 years.