by Thomas Keister
Most everyone has their own household rituals they do throughout the year, whether it is ‘spring cleaning’ or even ‘spring forward, fall back.’
One ritual you should add to that schedule is checking the tax withholding on your paycheck near the end of summer. With fall coming, most people get their attention divided. It can be the kids going back to school, football season starting up, the dreaded year-end holiday trilogy of Halloween, Thanksgiving, and Christmas, anything really.
While it may not seem like a big deal- you might have basically the same tax situation every year, and little to nothing ever changes, one should bear in mind that there are some significant changes to tax returns are coming next year.
With the passage of the Tax Cuts and Jobs Act last December, there are several tax law changes going into effect that could impact one’s tax return, including:
Checking and making any necessary changes to your withholding can prevent unpleasant surprises when tax season rolls up on you or can allow you to take home a bigger paycheck at the expense of having a larger tax refund. Taxpayers should check their withholding if they:
The Internal Revenue Service has Publication 505, Tax Withholding and Estimated Tax, and maintains a withholding calculator to assist taxpayers in making the right choices as it pertains to withholding.
The last, but no less important tip to remember is once you make any changes to your withholding, always follow up with your HR or Payroll department to ensure the changes have been made correctly.
With much ballyhoo, and a ton of questionable analysis and sales pitching being done on the Trump Administration's tax proposal, here are some valuable resources to help you gauge the impact of this tax plan on you, your family, and the nation at large.
We're pretty sure we didn't have to tell you the tax plan being floated by the Trump administration was going to be bad for most all of America, even Trump University grads, but this article from Forbes points out how just two of the proposed changes will impact the elderly, younger disabled people, and their families. Read more here.
Even better, read the Institute on Taxation and Economic Policy report on the Tax Cuts and Jobs Act, recently released by the House of Representatives. Unless you are part of the richest 1%, you will want to read this.
Renu Zaretsky of the Tax Policy Center has a great piece pointing out even more flaws (if you thought any more could possibly exist) in the Tax Cuts and Jobs Act. This is your must read material of the week, right here.
Regardless of your political bend, the math is pure and simple: this tax plan is a giveaway to the corporations, and does no favors to the middle class and beyond. Knowing how this plan, especially if it manages to pass, will impact you is vital. Do your homework.
Tax, business, and consumer news and opinion. Curated and/or written by the HFG staff.
(c) 2017-18 Hoosier Financial Group, LLC
by way of mention...
Nothing contained in the articles on InfoPoint should be considered financial advice. All readers are expected to do their own research and team up with their own financial advisors before making any moves, financial or otherwise. Hoosier Financial Group, LLC takes no responsibility for any action taken by a reader before, during, or after reading any part of the InfoPoint blog or any affiliated internet texts.