The Internal Revenue Service is encouraging all taxpayers to perform a prompt “paycheck checkup” to protect against withholding too little tax during 2018 and facing an unexpected tax bill in 2019.
A checkup also can prevent employees from withholding too much tax.
The Tax Cuts and Jobs Act enacted in December 2017 made major changes in limiting some deductions and changing the standard deduction.
The IRS has updated its withholding calculator, which can be used by employees to perform this recommended payroll checkup. Using information provided by the new IRS calculator, University employees can change their W-4 online through myUT, if needed. Instructions for updating your W4 withholding can be found here.
As a reminder, UT’s Payroll Department is unable to provide individuals with tax advice. Therefore, if you have any questions or concerns, consult the irs.gov website and/or your own tax professional.
Additionally, for questions regarding the new IRS calculator, you may refer to the withholding calculator frequently asked questions.
Taxpayers with more complex situations may want to refer to Publication 505, Tax Withholding and Estimated Tax, instead of the withholding calculator.