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Check Withholdings ...

by Diana Batchelor

While the 2017 Tax Cuts and Jobs Act (TCJA) created an additional amount of net income in your paycheck, your IRA distribution, your annuity distribution, or any other type of taxable income, it may come back to haunt you next year when you end up owing taxes for 2018. It is extremely important to check now your tax withholdings for federal taxes and state taxes from your 2018 income sources. This will give you some time to make any changes necessary to avoid an unpleasant reality next tax season. The TCJA has been determined to provide a savings for some taxpayers; however, it is providing a tax increase for others. Remember in 2018, there are NO exemptions for each qualified dependent in your household. The Schedule A deductions have been dramatically reduced or eliminated entirely such that most taxpayers will probably opt out of filing a Schedule A and file the standard deduction instead. It is crucial to know how these changes may affect your tax liability for 2018. Although it may seem like the TCJA was a good thing because it put more money in your pocket this year, you may not feel so good when it is time to pay the IRS after preparing your 2018 tax return. Please check your withholdings today. Contact your accountant, tax preparer, or advisor to verify that the appropriate taxes are being withheld from your taxable income sources.   

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