When was the last time you checked your pay stub? You might owe Uncle Sam and not even know it.
Courtesy: MGN Online
Remember the Tax Cuts and Jobs Act? The tax tables changed, resulting for most people, more pay. However, come tax time, tax professionals say many were surprised because they owed and did not get the usual refund.
Vicki Phanco says if you hired a tax pro for your 2018, touch base with them now.
"Do a projection to see where they're going to be," she said.
If you used an online program, most offer an estimator.
Remember, it's your money. It's your decision if you want more cash on each paycheck or if you rather have a refund.
If you want to dodge owing the I-R-S, you'll need to adjust your W-4.
Your W-4 determines the amount of income tax withheld from your pay.
You make note of your spouse, your dependents and your filing status; these are your personal allowances. The more allowances you have, the less tax will be withheld. If you owed in 2018 and your 2019 life has no major changes you might want to adjust line 6.
Let's make this simple: Say in 2018 you owed Uncle Sam $400
If you anticipate eight more paychecks by the end of the year, put $50 on line 6.
Before you bug your tax pro or your HR department, head to the IRS website. You'll find a Tax Withholding Estimator.