New information from the IRS and the new tax law changes

I've had a lot of questions about how the tax law changes will affect them.  Here is some data I pulled from the IRS website.  No better information than from the horses mouth!

Withholding
What You Need to Know

• Due to tax changes in the Tax Cuts and Jobs Act, many taxpayers’ withholding went down in early 2018, giving them more money in their paychecks in 2018.
• You may receive a smaller refund - or even owe an unexpected tax bill – when you file your 2018 tax return next year, especially if you did not adjust your withholding after the withholding tables changed.Other changes that affect you and your family include increasing the standard deduction, suspending personal exemptions, increasing the child tax credit, adding a new credit for other dependents and limiting or discontinuing certain deductions.

 What You Need to Do

• Use the IRS Withholding Calculator to perform a Paycheck Checkup to help you decide if you need to adjust your withholding or make estimated or additional tax payments now.
• Use your results from this Calculator to submit a new Form W-4, Employee's Withholding Allowance Certificate, to your employer.
• Make estimated or additional tax payments if the withholding from your salary, pension or other income doesn’t cover the 2018 income tax that you’ll owe for the year. Form 1040-ES, Estimated Tax for Individualsalso has a worksheet to help you figure your estimated payments.

Refunds
What You Need to Know

• Expecting a refund? Some refunds cannot be issued before mid-February.
• By law, the IRS cannot issue refunds before mid-February for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit.
• This applies to the entire refund, even the portion not associated with these credits.
• While the IRS will process your return when it is received, it cannot issue EITC/ACTC related refunds before mid-February.
• Your refund may be different - or you may even owe an unexpected tax bill – when you file your 2018 tax return next year.
• New tax law may affect the tax refund you expect next year. Review new IRS Publication 5307, Tax Reform Basics for Individuals and Families, to learn more.

 What You Need to Do

• Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
• File a complete and accurate return using your year-end W-2, bank and 1099 income statements and include all known refundable credits when you file your original tax return.
• File when you’ve received all your year-end statements and are ready to do so. If you usually file early in the year and you’re ready to file a complete and accurate return, there is no need to wait to file.
• Be aware that some returns may require additional review for a variety of reasons and take longer. For example, the IRS, along with its partners in the state’s and the nation’s tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.
• Perform a Paycheck Checkup to help you decide if you need to adjust your withholding or make estimated or additional tax payments now.