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March 15, 2018 3:05 am
Withholding Calculator Released
The Tax Cuts and Jobs Act lowered tax rates and made other changes that impact withholding on wages and other taxable compensation. Employees do not have to complete a revised Form W-4; employers will compute withholding based on existing W-4s on file.
However, you may want to complete a new Form W-4 to change your withholding allowances. This may be needed to increase or reduce withholding to better approximate what you’ll owe in taxes for the year. To help you determine whether a new form is necessary, you can use an IRS online withholding calculator (https://apps.irs.gov/app/withholdingcalculator/). It’s anonymous; you don’t have to put in your name or Social Security number to use it.
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Tax Glossary
Foreign tax credit
A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?
