The IRS has released a new version of Form W-4, as well as a new withholding calculator to help taxpayers adjust their 2018 tax withholding.

The Tax Cuts and Jobs Act made major changes to the tax law and it is important to ensure that you are having the right amount of tax withheld from your paycheck in order to avoid facing an unexpected tax bill or penalty when filing your 2018 tax return.

We recommend that all employees check their 2018 withholding, especially those who:

• Earn two incomes or are in two-income families
• Work only part of the year
• Have children who claim credits such as the Child Tax Credit
• Itemized deductions in 2017
• Have high incomes and more complex tax returns

 The IRS has created two methods to help taxpayers determine their appropriate withholding:

1. A withholding worksheet, which is included with the 2018 Form W-4
2. New withholding calculator https://apps.irs.gov/app/withholdingcalculator/index.jsp

We recommend using the calculator, as it is designed to help employees make changes based on their personal financial situation. To use the calculator, you will need your most recent pay stub and a completed copy of your 2017 income tax return.  If you have not yet filed your 2017 return, you can refer to 2016, but the results may not be as accurate.

-Your Fortis Tax Team
March 2, 2018