Check tax withholding to avoid surprises when filing next year’s tax returns
For Immediate Release
Use IRS Withholding Calculator To Plan Any Adjustments, Controller Yee Says
Sacramento – The Franchise Tax Board (FTB) today urged taxpayers to plan ahead to withhold the correct amount of taxes from their paychecks to account for recent changes in federal tax law.
Controller Betty T. Yee, Chair of the FTB, encourages everyone to take advantage of the Withholding Calculator offered by the IRS to determine if they should adjust withholding to avoid a big tax bill and potential penalties when it comes time to file tax year 2018 returns in early 2019.
“Proper tax planning now can help avoid an expensive surprise later,” Yee said. “Withholding the right amount with each paycheck throughout the year makes it less likely that you will have to write a big check to pay taxes later.”
To make any changes, employees should fill out a new Form W-4, Employee’s Withholding Allowance Certificate, and present it to their employer.
The Federal Tax Cuts and Jobs Act of 2017 increased the standard deduction, removed personal exemptions, and made many other taxation changes.
Modifications to withholding made now will not affect tax year 2017 returns due on April 17.
FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.