The Tax Cuts and Jobs Act of 2017 cut taxes for many Americans and changed the tax bracket structure. Did you check your withholding and adjust to take any likely tax bill changes into account?
According to a study from tax preparer H&R Block, you probably didn’t – and there’s a good chance you don’t know when to change your withholding, or how to do it.
Only 19% of Americans recently polled by H&R Block said they changed their withholding. Who knows if that’s an accurate number – because 40% of respondents said they updated their W-2 form and 11% said they updated their 1099 form. Only employers fill out those forms. They are sent to employees and the IRS at the beginning of the year to summarize the previous year’s income and all taxes withheld.
Respondents are probably confusing the W-2 form with the W-4 form for wi…