The full effects of The Tax Cuts and Jobs Act (TCJA) passed in December 2017 are being felt. There are so many tax changes (have you seen the new forms?), it could be years before all the changes are fully understood. If you haven’t figured it out yet, you may need to adjust your withholding, especially if your “refund” turned into a balance due.
In a recent article I told you that many taxpayers are finding that they are getting smaller refunds, or actually owe with their return, because the Tax Cuts and Jobs Act of 2017 modified withholding tables for employees, resulting in less tax withheld. Please remember that in many cases your tax liability will be less than it was in 2017 given the same income and deductions, but the withholding tables may have been a bit too aggressive in reducing withholding so many are finding that they have to pay the IRS this year.
I’ve seen a lot of news items in the past few days about how to track your refund. The IRS has a great tool called “Where’s My Refund” on their website (just type where’s my refund in your search). However, the interesting thing about typing that phrase into your search is the first choice I saw actually took me to a page on the IRS website with a Withholding Calculator.
As if taxes weren’t stressful enough… you must also contend with “audit anxiety.” The unnerving prospect of having your return gone over with a fine-tuned comb is ever present in your mind. The IRS knows this: they leverage this anxiety to keep taxpayers honest! We’ll help alleviate your worry. Will your return be audited - and how can you mitigate both the risk, and, if audited, the stress of the process?