Check your withholding now to avoid tax surprises later

From MCC Human Resources:

The Tax Cuts and Jobs Act, passed in December 2017, will significantly affect 2018 tax returns that people file in 2019. Because of these changes, it’s more important than ever to be aware of your paycheck withholding amounts.

The new tax law changes include:

  • An increased standard deduction
  • Elimination of personal exemptions
  • Increased Child Tax Credit
  • Certain deductions limited or discontinued
  • Tax rates and brackets changed

Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time. It can also help taxpayers avoid a large refund if they’d prefer to have their money in their paychecks throughout the year. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help.

People who should check their withholding include taxpayers who:

  • Are a two-income family.
  • Have two or more jobs at the same time or only work part of the year.
  • Claim credits like the Child Tax Credit.
  • Have dependents age 17 or older.
  • Itemized deductions in 2017.
  • Have high income or a complex tax return.
  • Had a large tax refund or tax bill for 2017.

If you decide an adjustment needs to be made to your MCC federal and/or state W-4 form, it can be done by logging into myMCCKC and going to Employee Center. Under Payroll, select the form you want to update.