Tax Strategies

Updated: Nov 29, 2018

Check your Withholding




Employers adjusted worker's with-holding earlier this year to reflect the federal tax overhaul, which reduces tax rates and doubles he standard deduction. But the new law also limits or scraps some popular tax breaks. If you continue to itemize and some of your deductions have been eliminated, you may not have enough withheld from your paychecks, which could lead to an unexpected tax bill in April. You are more vulnerable if you in a high-tax state because he law now caps the deduction for state and local taxes at $10,000. To find out where you stand go to www.irs.gov and search for "withholding" calculator". In general you do not have to worry if you owe less than $1,000 after subtracting withholdings and credits, or if you paid at least 90% of the tax due for current year or 100% of taxes due the previous year, whichever is smaller.



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