Because of recent changes to the tax law for 2018, the IRS recommends that taxpayers use the withholding calculator on IRS.gov to do a "paycheck checkup."
The calculator can help prevent you from having too little or too much withheld for taxes from your paycheck. Having too little withheld can mean an unexpected tax bill or potentially a penalty at tax time in 2019. Or, with the average refund topping $2,800, some taxpayers might prefer to have less withheld upfront so that they receive more in their paychecks.
Here are some tips for using the withholding calculator:
- Use your most recent pay stubs and federal income tax return to help estimate income and other items for 2018. Keep in mind that the new tax law made significant changes to itemized deductions.
- Fill in all information that applies to you.
- Make estimates when necessary, but keep in mind that the results are only as accurate as the information entered.
- If you have questions, check the information links embedded in the program.
- Print the final screen that summarizes your entries and the results. Use those results to determine whether you should log into Johns Hopkins' Employee Self Service website and change your withholding for the rest of the year.
The IRS does not save or record the information you enter in the calculator.
For more detailed information, visit IRS.gov.