Itemizers, listen up. Now is a good time to review your taxes. But it’s only June. Why should you worry about that now? Well, it’s never too early to get prepared for the next tax season. And that’s especially true this upcoming tax season, thanks to the Tax Cuts and Jobs Act.
With all the changes, your 2018 tax year is surely going to be different than your 2017 tax year. Specifically, there have been significant changes to itemized deductions. For starters, the standard deduction has increased by nearly double. That means for many people it will no longer be beneficial to use itemized deductions.
So what should you do? You need to give your paycheck a checkup, so to speak. In other words, you need to make sure you have the right withholding amount. You can do this by heading over to IRS.gov and using their withholding calculator. Plug in your numbers and find out if enough money is being withheld from your paycheck each pay period.
This can help you plan ahead for 2019 tax season, which will help you avoid any nasty surprises come tax time. If you need to change your withholding, simply fill out a new Form W-4 and submit it to your employer.
If the Tax Cut and Jobs Act has affected your paycheck, then don’t wait till the next tax season to review last tear’s taxes. Get it done now and save yourself some headaches when tax time rolls around.