Tax Experts: Check Your W4 Now to Avoid Painful 2019 Tax Season
LEWISTON, ID —
Tax experts say now is the time to start thinking about your 2018 taxes because the new tax code may affect your refund.
Some changes, like a doubled Child Tax Credit and the new Family Tax Credit could give you a bigger payout.
Tax advisor John Blankenship of Lewiston's H&R Block says, "Lot of people that were used to being in the 15 or 25% bracket will now find themselves in a little bit lower tax bracket, so that kind of helps on that bottom line."
The IRS also adjusted their withholdings table, which may not be good for everyone.
Blankenship says, "They might need to adjust their W4 and take an exemption down to have a little bit more withheld so that they get it on the backend."
Specifically, if you've noticed a bigger bump in your paychecks in the last few months, it may hurt come tax time next spring.
John recommends comparing pay stubs from December and now; a boost in recent months could signal you're not withholding enough.
He says most everyone will need to take a look at their W4s.
"I think single people with no dependent children are probably at the head of the list because they're taxed at a higher rate than anyone else. Married couples that are both working, empty nesters that don't have children in the house anymore. If they have two incomes, if they're both getting that extra, then that's a double hit," John explains.
He says they're happy to help take a look at those numbers for you. Just make an appointment for after the busy April 17th tax deadline.
One thing that hasn't changed is making sure you keep your records and documents, such as medical bills, organized for your tax preparer.