Have you had your “Paycheck Checkup”?
The most recent tax reform laws could have a significant impact on filers who have itemized their deductions in the past. (Many people have historically itemized their deductions to take advantage of mortgage interest deductions and deductions for donations to charity.)
People who’ve itemized deductions on past tax returns should consider doing a “paycheck checkup.” You can use the updated IRS Withholding Calculator to help determine if the right amount of money is being held from your paycheck so that you can minimize surprises at tax time. This is especially important due to tax law changes like:
• A cap on deductions for state and local taxes.
• Limits to the deduction for home mortgage interest in certain cases.
• Elimination of deductions for employee business expenses, tax preparation fees and investment expenses.
You can find out more at IRS.gov/taxreform.
Did you know the IRS is on YouTube? Here are some YouTube videos that discuss some of the tax law changes: