The IRS suggests employees who work more than one job or who add summer employment should conduct a mid-year Paycheck Checkup. Reviewing pay will allow workers to confirm they have the right amount of tax withheld from each paycheck.
Two income families and people working more than one job are the most susceptible to under-withholding or over-withholding from pay. This could result in receiving unexpected tax refunds (either more or less than budgeted). Changes in personal circumstances (such as marriage, divorce or birth of a child) may also create an over- or under-withholding situation.
Performing a mid-year paycheck review will allow time for future tax withholding adjustments, if necessary. The longer an employee waits for a review, the fewer pay periods available to correct any issues.
Employees can use the withholding calculator, which may be accessed by clicking here, to estimate income, credits, adjustments and deductions. It is helpful to have a 2018 tax return and recent paystub when using the calculator.
The data from the calculator may be used to fill out and submit a new Form W-4 to change existing withholding allowances and/or adjust any extra dollar amount withheld from pay.
