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.
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:
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:
Gifts to charity
Dependent care expenses
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.