By now, you may have noticed a slight increase in your paycheck! This is a great opportunity to ensure that you won’t have a tax liability in 2019. With the many changes that we will be seeing during the 2019 tax filing period, I implore you to check your deductions. Here is a short list of things you can do:
Review your W-4:
If you have been on a job for some time or newly started, request a copy of your W-4 to view exactly what is on the form. Remember your W-4 should work in concert with your current salary, your tax bracket, and if you are married, your spouse’s salary also.
Talk to your accountant:
Your accountant or tax professional will be able to alert you and your spouse (if married) to the number of exemptions that should show up on your Form W-4. It is important to seek the advice of a professional and put all the cards on the table. This is the only way to obtain accurate advice and to limit your chances of having a tax liability from not having enough taxes taken out at work.
Be careful of who you speak with:
There has been some strange advice that I have heard over the years about withholding taxes at work. I have even heard of claiming nine exemptions so that little-to-no taxes will be withheld from your check. Bad advice. I have also heard that the best thing to do is just claim single with zero exemptions and get a small pile of money when you file your return. Possibly bad advice.
I will say this—everyone’s situation is unique so the advice that may have worked for someone may not work for you because there may be a different set of circumstances that aren’t seen by either party. Speak with a professional about things of this matter. Speak to your co-workers and neighbors about things less important than this.