Have you noticed a slight jump in your paycheck recently? You’re not alone! Millions of Americans are receiving heftier paychecks due to the new tax law signed into law in December.
To help taxpayers check their 2018 tax withholding following the major changes in the tax law, the Internal Revenue Service recently released an updated Withholding Calculator and a new version of Form W-4.
The IRS encourages taxpayers to use these tools to make sure they have the right amount of tax taken out of their paychecks and thus avoid a larger tax bill for 2018.
The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.
Determining how much to withhold depends on your unique financial situation. The professionals at Hamilton Tharp can help, call us today for a paycheck checkup.
Did you know taxpayers can check the status of their 2017 tax refund online? The “Where’s My Refund?” tool is available on irs.gov and through the IRS mobile app, IRS2GO.
Updating daily, “Where’s My Refund?” has the most up-to-date information about the status of your refund. The tool displays when the return is received, approved and sent. After the IRS approves the refund, an actual refund date is provided.
To check the status of your refund you will need three pieces of information:
The State of California Franchise Tax Board also provides a tool for individuals to check the status of their California state income tax return.
Remember, some tax returns require additional processing time. We’ve listed some of the most common circumstances below that can impact refund timing.
The Internal Revenue Service warns taxpayers of a new twist on an old scam in which criminals’ steal client data from tax professionals, file fraudulent tax returns and deposit the erroneous refund into the taxpayers’ real bank account. They will then use a variety of tactics to reclaim the refund from the taxpayer. There are currently two versions of the scam.
Version One
Criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency.
Version Two
The taxpayer who received the erroneous refund gets an automated call with a recorded voice saying he is from the IRS and threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the taxpayer a case number and a telephone number to call to return the refund.
What should you do if you received an erroneous refund?
The IRS urges taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encourages taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately.
Remember, the IRS will never
The professionals in our office are closely monitoring this evolving scam, we will keep you apprised.
