Tax season is over for most and the results were hard to swallow for some. If you are one of the taxpayers that had a large tax bill for 2018, this post is for you.
There were several changes in play that resulted in the unexpected tax bill that many taxpayers faced this year. The tax law changes that the TCJA brought, reduced deductions for many and eliminated exemptions for all. Further compounding the problem was the change to federal withholding tables that employers use to calculate how much tax to withhold from your paycheck each pay period. The amounts required to be taken from your check decreased and resulted in less taxes credited to filers at tax time.
The fix for 2019? Call your CPA and ask them to review your paystubs for changes you can make to withholding now. You will still have 6 months of paychecks to reduce next year’s tax bill.
Honorine M. Campisi, CPA