The IRS recommends doing a “paycheck Check-up” in October to make sure you have enough tax withheld from your paychecks. Those who have divorced started a second job, or whose child no longer their dependent should consult a tax professional or use the IRS website Withholding Calculator to perform a quick “paycheck checkup.”
“The objective of the withholding calculator and the worksheet are to get the tax liability and withholding as
close to equal as possible, resulting in minimal refund or tax owed. Results from the calculator will include
a recommendation of whether users should consider submitting a new Form W-4, Employee’s Withholding
Allowance Certificate, to their employers to either reduce or increase the amount of their withholding.” says Publication 5304, found on IRS.gov.
In other words, you may not get the kind of money back in your tax returns as prior years. Why? You are receiving more in your paycheck and less held for taxes. The goal of the new tax reform for your W-4 is to have Federally withheld no more than $25 more or less than the tax you actually owe on your earnings. Form W-4 relates to an employee’s federal income tax withholding. Note that State income tax withholding is separate.