In 2018, many taxpayers’ withholding decreased where taxpayers experienced an increase in paychecks; however, this may cause an unexpected tax bill or a smaller refund in 2019. When preparing to file your taxes, get to know your options to ensure you are not surprised when tax season arrives.
Prepare for tax season:
- Review your withholding.
- Review the tax law.
- Review your Individual Taxpayer Identification Number (ITIN).
- Find the forms you need to file.
- Look for resources available to you.
- Perform a Paycheck Checkup to determine if adjusting your withholding could eliminate extra taxes you may owe this season:https://www.irs.gov/paycheck-checkup
- Submit a new Form W-4, Employee’s Withholding Allowance Certificate: https://www.irs.gov/pub/irs-pdf/fw4p.pdf
- Make additional estimated tax payments if your current income withholding does not cover the 2018 tax you owe by using the Form 1040-ES, Estimated Tax for Individuals worksheet to determine your estimated payments:https://www.irs.gov/forms-pubs/about-form-1040-es
When prepping for your refund and to determine if you will receive a smaller refund due to the new laws:
- Evaluate your expected refund amount.
- Review the Publication 5307, Tax Reform Basics for Individuals and Families for more information:https://www.irs.gov/pub/irs-pdf/p5307.pdf
- Renew your ITIN and ensure it has not expired.
The 2018 Form 1040 has been redesigned and replaces the 1040A and 1040EZ forms. If you file electronically, you will be required to have your 2017 Adjusted Gross Income (AGI) to sign your return: https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income. If you use the same software you have used in previous years, you do not need to enter your 2017 AGI.
Learn more about taxpayer resources. Contact a Sourcewise Community Resource Specialist: (408) 350-3200, option 1.