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Tax changes to look out for this year

A question we should ask ourselves each year if we are withholding enough money to pay taxes this year.

State officials are launching an Idaho-specific W-4 form to help taxpayers figure out how much state income tax should be withheld from their paychecks.

The Idaho Tax Commission also mailed out about 70 thousand copies of the form to Idaho employers with payroll withholding accounts.

According to officials, thousands of Idaho residents have not updated their withholding since the tax reforms following the tax overhaul and Idaho tax cut in March of 2018.

This new tax law will affect everyone, and if you have not made adjustments to your withholdings, you could face an unexpected tax bill.

Toefuatai Afamasage, a CPA with Jordan and Company, says “If you’re unsure of how much to withhold on your paychecks going forward, visit the IRS website, they have a withholding calculator that walks you through on how much you need to withhold so these are changes not only on the federal level but also on the state level.”

The Idaho State Tax Commission also has helpful assessment tools on their website, but tax professionals say if you are still confused about how much to withhold, they are happy to help explain it.

To see the withholding calculator, click here.

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