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Use 2018 tax return to estimate 2019 withholding

posted Dec 15, 2019, 7:39 PM by Zaher Fallahi

Use 2018 tax return to estimate 2019 withholding

Source: IRS Tax Tip

Millions of taxpayers have filed their 2018 tax return, making this a prime time to consider whether their tax situation came out as expected. If not, taxpayers can use their  completed 2018 return and the Tax Withholding Estimator to do a Paycheck Checkup ASAP, and adjust their 2019 withholding. Having their 2018 return handy can make it easier for taxpayers to estimate deductions, credits and other amounts for 2019. A Paycheck Checkup is a good idea for anyone who:


1- Adjusted their withholding in 2018, especially those who did so later in the year.

2- Owed additional tax when filed their 2018 tax return.

3- Had refunds larger or smaller than expected.

4- Had marriage, childbirth, adoption, buying a new home or income changes.

Since most people are affected by the Tax Cuts and Jobs Act (TCJA) all taxpayers should check their withholding. They should do a checkup even if they did one in 2018. This especially includes taxpayers who:

1- Have children and claim credits such as the Child Tax Credit.

2- Have older dependents or children age 17 or older.

3- Have 2019 changes to itemized deductions.

4- Itemized deductions in the past.

5- Are two-income earners.

6- Have two or more jobs simultaneously.

7- Work part only.

8- Have high income or a complex tax return.

This Tax Withholding Estimator works for most taxpayers. Those with more complex situations may need to use Publication 505, Tax Withholding and Estimated Tax, instead of the Tax Withholding Estimator. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.

Taxpayers can use the results from the above calculation to revise their Form W-4, Employee’s Withholding Allowance Certificate, and submit it to their employer. In some instances, the calculator may recommend they have an additional flat-dollar amount withheld each pay period. Taxpayers give this form to their employer and do not send this form to the IRS.

 Zaher Fallahi Certified Public Accountant (CPA) Tax CPA  income tax returns preparer. As a tax attorney, he represents taxpayers before the IRS Tax Defense Attorney nationwide. Toll free 1-(877) 687-7558, LA (310) 719-1040, and Orange County (714) 546-4272, E-mail