In the words of the legendary Ice Cube, you better check yourself before you wreck yourself. And by that, he meant to check your tax withholding. 🧊👀
OK he probably (definitely) didn’t, but we’re telling you to give it a once over before filing this year! ✅ A recent write up laid out all the reasons why. Check out the highlights right meow.
Here’s Five Fast Facts on your withholding and this year’s taxes:
- 💰 Cha-Ching! - Thanks to some newish updates to tax law, tons of Americans could see bigger refunds this year. Studies estimate the average refund could be as much as $1,000 higher! Last year, the average tax refund was $3,167.
- 👛 Now and Later - While a bigger tax refund can feel like a WOOHOO, updating your withholding could allow you to take home more in your paycheck now instead of waiting for a fat refund next year.
- 💲 Paycheck Play - Let’s do some quick math. If your refund this year is $1,000 more that it was last year, updating your withholding could allow you to keep $45 more in each biweekly paycheck. That’s hard earned cash you could be spending on essentials.
- 📑 Tax Facts - So what are the tax updates? Withholding tables on Form W-4 have changed to reflect some new deductions. One impacts people 65 and older and another is for tips and overtime income. Also, the cap on state and local tax deductions (SALT) jumped from $10K to $40K.
- 📈 Very Interest-ing - If you have a regular job, your employer should withhold taxes for you out of each paycheck. Just make sure they’re withholding enough or it could spell trouble. The IRS is now charging 7% interest on estimated tax underpayments.
🔥Bottom line: Need to update your withholding for this year? Get in touch with Karen from HR. She’ll help you fill out a new W-4. Planning on buying a home this year? Trump’s got a few tricks up his sleeve to try to make it more affordable. Will it work? What’s it all about? You’ve got questions, we’ve got answers…in this article!
Have you filed your taxes yet?
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