The IRS says it is launching a campaign to help specific groups of taxpayers avoid an estimated tax penalty by paying the right amount of tax all year.
This campaign which is starting on September 6, 2018, is aimed at helping wage earners, retirees, small business and self-employed individuals to meet the upcoming Sept. 17 deadline for quarterly estimated tax payments. It will also encourage them to perform a Paycheck Checkup.
The IRS says that performing a paycheck checkup can help users identify tax withholding to make sure they have the right amount of tax withheld from your paycheck at work.
“Because of the far-reaching tax changes taking effect this year, doing a Paycheck Checkup now may help avoid an unexpected year-end tax bill and possibly a penalty in 2019. The Tax Cuts and Jobs Act, passed in December 2017, made significant changes, which will affect 2018 tax returns that people file in 2019. These changes make checking withholding amounts even more important,” the IRS says in a press release.
These tax law changes include:
- Increased the standard deduction
- Eliminated personal exemptions
- Increased the Child Tax Credit
- Limited or discontinued certain deductions
- Changed the tax rates and brackets
The IRS is also encouraging partner groups inside and outside the tax community to share this important information with their members and employees.