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24 THE QUEENS COURIER • JULY 4, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM PAYCHECK CHECKUP The Internal Revenue Service encourages taxpayers to look at their tax withholding now to take charge of their tax situation and avoid a surprise at tax time next year. Doing a paycheck checkup now using the IRS Withholding Calculator means taxpayers have the majority of the year to spread out any changes they make to their withholding. The agency said the average tax refund was $2,729 for tax year 2018. While some taxpayers may find it advantageous to get a large tax refund, others may wish to have more of their money in their paychecks throughout the year. Whatever the goal, the IRS wants taxpayers to know that while taxes must be paid as income is earned during the year, either through withholding or estimated tax payments, they can make adjustments that will influence the size of their refund. TAX REFORM CHANGES The Tax Cuts and Jobs Act of 2017 made significant changes that affected almost every taxpayer. Most changes took effect in 2018 and taxpayers first noticed them on the tax return they filed earlier this year. The new law increased the Child Tax Credit from $1,000 to $2,000 per qualifying child, while also raising the income limits for the credit. This means more people will now qualify for the Child Tax Credit. There is also a new $500 credit for older dependent children and qualifying relatives. While the tax-law changes nearly doubled the standard deduction, they also suspended personal and dependency exemptions that existed in the past. Because of these changes, fewer taxpayers itemize their deductions, and new limits apply to many of these deductions. These restrictions apply to state and local taxes, mortgage interest and miscellaneous itemized deductions, and higher limits apply to charitable contributions. As a result, many taxpayers ended up receiving 2018 refunds that were larger or smaller than expected. Others found they owed additional tax when they filed. For that reason, taxpayers may need to raise or lower the amount of tax they have taken out of their pay. While a withholding check is a good idea any year, the IRS also encourages taxpayers who have a change in life circumstances to do a Paycheck Checkup. Personal changes that may affect taxes include marriage or divorce, birth or adoption of a child, or the ‘aging out’ or loss of a dependent. USING THE WITHHOLDING CALCULATOR The Withholding Calculator helps taxpayers get their tax withholding right by making sure these and other tax changes are taken into account. Taxpayers enter their deductions and credits into the online tool, as well as estimate income from other sources, such as a spouse, bank interest, second jobs and gig-economy employment. To use the Withholding Calculator most effectively, taxpayers should have a copy of their 2018 tax return, as well as a recent paystub for themselves and their spouse if married and filing jointly. The Withholding Calculator will recommend the number of allowances that a taxpayer should claim on a Form W-4. In some instances, it will recommend that the employee also have an additional flat-dollar amount withheld from each paycheck. While the Withholding Calculator is primarily designed for taxpayers who earn wages, it can also benefit those with pension and annuity income. If the Withholding Calculator suggests a change, the employee should fill out a new Form W-4 and give it to their employer as soon as possible. Similarly, recipients of pensions and annuities can make a change by filling out Form W-4P and giving it to their payer. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. If you have any questions or require additional information, please call John at 718-707-0955. Call Now & End Your Tax Nightmare! �� Co-Author of the best selling book “Breaking the Tax Code” �� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor �� YOUR PARTNER IN THE STRUGGLE FOR JUSTICE BEST ATTORNEY AND BEST PERSONAL INJURY LAWYER YOUR PARTNER IN THE STRUGGLE FOR JUSTICE JOHN J. CIAFONE ESQ. ATTORNEY THANK YOU! 25-59 Steinway Street, Astoria, NY 11103 718-278-3900 johnjciafone@yahoo.com NYS Certified EMT/EMS BEST ATTORNEY WINNER 3 YEARS IN A ROW! BEST PERSONAL INJURY LAWYER WINNER 2 YEARS IN A ROW! Admitted in NY, NJ and Washington DC link /WWW.QNS.COM link