Hear ye, here ye….. The “simplified” tax returns have been in the market for a year now and simplified indeed…. NOT. The 1 page tax return is here, but we added another 5 or 6 stupid schedules to support the numbers on that 1 page. Yeah, I’m no fan of it, especially after reviewing tax returns for 20 years where the forms have been pretty much the same with a few tweaks here and there…. Getting thrown into these new forms ain’t so fun.
Anyhow - with this “simplification” comes some confusion as well about what to do with your paycheck if you’re working for wages.
Here’s how I look at this. If all went well with your tax returns last year then don’t need to do anything. If it ain’t broken, don’t fix it.
If you weren’t happy, and owed a lot more than normal when you filed, you should update your employer with a new W4 and make some tweaks. Usually, that comes to play with dual incomes, multiple jobs with multiple W2’s, part-time jobs with no taxes taken out, or kids and various credits for education, etc. Talk to your tax preparer if you need help.