Retirement

Will Reduced Withholdings Cause You to Owe at Tax Time?

By Modern Wealth Management

July 20, 2018

What are Reduced Withholdings?

In December 2017, Congress passed a major tax bill called the Tax Cuts & Jobs Act (TCJA) which resulted in lower federal income taxes for many Americans. Most Americans pay their federal income tax through withholding taxes every pay period on their wages, pensions or social security. The tax law change will result in less total tax for many Americans, but most people will also see less tax withheld every pay period. Without a thorough review of your tax situation, you may go from a history of receiving refund checks to a balance due at tax time due to reduced withholdings. The good news is that we still have time to change this situation.

We strongly suggest that every individual with withholding, whether from a W-2 job, retirement income, or social security income contact us or drop off your information at our office. Our CPAs will then review and develop any recommendations for your personal situation.

We will need the following information:

  1. Your most recent pay stub(s).
  2. Any changes to your family or tax situation.
  3. A copy of your 2017 tax return unless prepared by BFG Tax Service.

After we receive this information, we will calculate whether or not you need to change your withholding. We will even fill out a new W-4 for you to provide to your employer.

We strongly urge you to contact us at 913-393-1000 or schedule a complimentary consultation below to determine where you stand, tax-wise. None of us want any unpleasant surprises!

Thank you, 

BFG Tax Service   

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Investment advisory services offered through Modern Wealth Management, Inc., an SEC Registered Investment Adviser.

The views expressed represent the opinion of Modern Wealth Management an SEC Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.