Essex County CPAs: Check Your W-4s For 2018 (Here’s Why)

ESSEX COUNTY, NJ — An Essex County CPA group is offering New Jersey residents a piece of advice when it comes to their taxes: check your W-4s.

The Roseland-based New Jersey Society of CPAs (NJCPA) issued a statement on Tuesday, advising taxpayers to review their Form W-4 to “avoid any surprises” when filing their 2018 tax returns, particularly if they are claiming excess allowances on their W-4 based on prior-year deduction amounts.

According to the NJCPA, many taxpayers have seen an increase in their take-home pay recently due to the withholding tables that were updated as a result of the Tax Cuts and Jobs Act of 2017.

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The group said that those who may be at risk for being under-withheld include taxpayers who had large itemized deductions in 2017, those who receive compensation for commissions and bonuses, and those who pay large state and local taxes.

“Determining the right amount of withholding has always been somewhat of a challenge,” the NJCPA stated.

The IRS has a new version of Form W-4 and a new withholding calculator with the 2018 changes to assist taxpayers. The NJCPA offered a sample breakdown comparing the old and new withholding tables for a few sample taxpayers, “barring other circumstances,” which can be seen below.

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