Tax Change 2018: What You Need To Know
May 17, 2018 in Employment, News & Tips
Even though the crunch of tax season is over and the worry and stress about dealing with the Internal Revenue Service have subsided, that doesn’t mean that it’s time to kick back with bonbons in hand. The recently passed(in terms of tax law changes) Tax Cuts and Job Acts of 2017 has changed much of the pre-existing tax code dating back to the Reagan years. The Internal Revenue Service has advised taxpayers to reevaluate what percentage they pay weekly for taxes in order to avoid having to pay up big next spring.
To figure out how to check how much to withhold, the IRS helps you out with a “Withholding Calculator”, available on their website. Mistakes in weekly withholdings could lead to IRS problems or IRS debt. To avoid being in the situation where IRS debt relief becomes necessary, it may be best to increase your withholdings. To increase or decrease your withholdings, you must submit a new W-4 or Employee’s Withholding Allowance Certificate to your employer or employers. The Internal Revenue Service especially recommends anyone with itemized deductions, two-income families, those working two or more jobs and parents claiming the Child Tax Credit to do a withholding check.
The Internal Revenue Service levies no punishment against those who file a late return if they are due for a refund. The IRS levies penalties with interest on late returns with taxes that are unpaid. It is always better to file for an extension or to file even knowing you will be in tax debt than to not file at all For those making less than $66,000 a year, the Internal Revenue Service offers a free filing program. The free filing service is available for those that qualify until October 15. The Internal Revenue Service also allows you to file electronically.
More and more scammers have tried to impersonate the Internal Revenue Service. It is important to note that the IRS never begins contact through email, phone or any form of social media. They almost always will contact you through the mail. For those that have filed late returns sixty days after the filing deadline will face a penalty of either $210 or one hundred percent of taxes that are unpaid. The IRS levies a penalty of whatever of the two values is less. Some late tax filers may be able to get some sort of relief from penalties and fines.