Countdown to Open EnrollmentJune 26, 2019
Beatitudes of LeadershipJuly 26, 2019
All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. Your team members should check their withholding on an annual basis.
By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Listed below is key information about which taxpayers should be made aware.
- Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track.
- Taxpayers should also check their withholding when life changes occur. These changes include things like:
- Marriage or divorce
- Birth or adoption of a child
- Purchase of a home
- Chapter 11 bankruptcy
- New job or loss of job
- Not all taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like:
- Capital gains
- IRA distributions, including certain Roth IRAs
- Possible life changes might affect a taxpayer’s itemized deductions or tax credits. The taxpayer should check their withholding if they experience changes to their:
- Medical expenses
- Interest expense
- Gifts to charity
- Dependent care expenses
- Education credit
- Child tax credit
- Earned income tax credit
The best way for taxpayers to check their withholding is to use the Withholding Calculator on IRS.gov. Your team members can verify your current withholding on Pinnacle’s DNet2.0 online portal.