Many taxpayers have seen an increase in their take-home pay recently due to the withholding tables that were updated as a result of the Tax Cuts and Jobs Act of 2017.
Determining the right amount of withholding can be somewhat of a challenge. The IRS has released a new version of Form W-4 for the new tax law.
AEPG encourages clients to review their withholdings with their CPA and update Form W-4 with their employer to avoid any surprises when filing their 2018 tax returns, particularly if they are claiming excess allowances on their W-4 based on prior-year deduction amounts. Those who may be at risk for being under-withheld include those who had large itemized deductions in 2017, those who receive compensation for commissions and bonuses, and those who pay large state and local taxes.
If you are not working with a CPA to prepare your taxes, AEPG can help. Please contact your AEPG® Financial Life Planner to help you find one that is right for you.
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