New Factors Increase Importance of Withholding Check-Up
There are several new factors that could affect refunds in 2017. A new tax law change requires the IRS to hold refunds a few weeks for some early filers in 2017 claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections, which means some tax returns could again face additional review time next year to protect against fraud. Taking a closer look at the taxes being withheld can help ensure the right amount is withheld, either for tax refund purposes or to avoid an unexpected tax bill next year.
By adjusting the Form W-4 (the form employers use to figure the amount of federal income tax to be withheld from pay), you can ensure that the right amount is taken out of your pay throughout the year so that you don’t pay too much tax and have to wait until you file their tax return to get a refund (if applicable).