GOP Tax Plan: Workers Should Check Tax Payments Are Accurate

With the new GOP tax plan codified into law, American workers will begin to see changes in their paychecks by the middle of February. While the Treasury Department has sent information to employers explaining how much money should be withheld from employee paychecks, the IRS says workers should check their withholding amounts to make sure they are not overpaying or underpaying taxes.

To ensure that the correct amount in taxes is being withheld, employees will need to use a new IRS online calculator to make sure they are not underpaying or overpaying taxes. According to a report in The Washington Post, that calculator will be available sometime next month.

If employees find discrepancies in the amount of taxes they are paying they will be the ones responsible for telling their employers to make the corrections, the Post reports. In an FAQ posted on the IRS website, the agency says employees should review their withholding to make sure it is accurate.

"Some people have more complicated tax situations and face the possibility of being under-withheld," the IRS said. "For example, people who itemize their deductions, couples with multiple jobs or individuals with more than one job a year will be encouraged to review their tax situations. The IRS will be encouraging people – particularly those with more than one income in their household—to check their withholding. The IRS is updating the 2018 Form W-4 and the IRS.gov withholding calculator to help with this process."

The IRS is also designing new W-4 forms but they won't be available until later this year, according to the Post. The current W-4 forms that employees fill out for their employers to ensure accurate tax withholding apply to a now outdated tax system.

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