Income Tax Changes for 2018

The Tax Cuts and Jobs Act enacted this year made significant changes in personal income tax.

The Internal Revenue Service (IRS) is urging employees to review their income tax withholding to avoid being significantly under or over withheld at year end.  To assist with this review, the IRS has released a new Withholding Calculator.  This tool incorporates new tax law and helps determine how many allowances an employee should claim on a Form W-4, Employee’s Withholding Allowance Certificate.  If applicable, a new Form W-4 can be completed and submitted online via Employee Self Service. 

It is recommended that individuals with complex financial situations consider using the Withholding Calculator in addition to asking a tax preparer to review.  In particular, the following groups should review their withholding:

• Two-income families
• People with children who claim credits such as the Child Tax Credit
• People who itemized deductions in 2017
• People with high incomes and more complex tax returns
• People with two or more jobs at the same time or people who only work part of the year

Payroll can inform, but not advise on employee withholding. Employees requiring advice should consult the IRS or a professional tax preparer.

Visit the payroll page for more information and helpful links.

If you have any questions, please contact Payroll at payroll@tulane.edu.