I recommend regular health checkups and the IRS recommends a “Paycheck Checkup”
Importance of regular health checkups: https://www.cdc.gov/family/checkup/index.htm
Paycheck Checkups....Source: FTB Tax News July 2019/IRS.gov
The IRS recommends that everyone do a Paycheck Checkup in 2019. Though especially important for anyone with a 2018 tax bill, it’s also important for anyone whose 2018 refund was larger or smaller than expected. By changing withholding now, taxpayers can get the refund they want next year. For those who owed for 2018, boosting tax withholding early in 2019 is the best way to head off a tax bill a year from now. In addition, taxpayers should always check their withholding when a major life event occurs or when their income changes.
When to check withholding:
Early in the year
Whenever the tax law changes
When life changes occur:
Lifestyle – Marriage, divorce, birth or adoption of a child, home purchase, retirement, filing chapter 11 bankruptcy
Wage income – The taxpayer or their spouse starts or stops working or starts or stops a second job
Taxable income not subject to withholding – Interest, dividends, capital gains, selfemployment and gig economy income and IRA (including certain Roth IRA) distributions
Itemized deductions or tax credits - Medical expenses, taxes, interest expense, gifts to charity, dependent care expenses, education credit, Child Tax Credit, Earned Income Tax Credit
How to check withholding
Use the Withholding Calculator on IRS.gov.
The Withholding Calculator works for most employees by helping them determine whether they need to give their employer a new Form W-4. They can use their results from the calculator to help fill out the form and adjust their income tax withholding. If they receive pension income, they can use the results from the calculator to complete a Form W-4P, Withholding Certificate for Pension and Annuity Payments, and give it to their payer.
Use the instructions in Publication 505, Tax Withholding and Estimated Tax. Taxpayers with more complex situations may need to use Publication 505 instead of the Withholding Calculator. This includes employees who owe self-employment tax, the alternative minimum tax or tax on unearned income from dependents. It can also help those who receive non-wage income such as dividends, capital gains, rents and royalties. The publication includes worksheets and examples to guide taxpayers through these special situations.
Change withholding
To change their tax withholding, employees can use the results from the Withholding Calculator to determine if they should:
Complete a new Form W-4 and submit it to their employer.
Not file with the IRS.
Those who don’t pay taxes through withholding, or don’t pay enough tax that way, may still use the Withholding Calculator to determine if they have to pay estimated tax quarterly during the year to the IRS. Those who are self-employed generally pay tax this way. See Form 1040-ES, Estimated Taxes for Individuals, for details.
More resources
Click here for more information:
https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/july-2019/irs-recommends-a-paycheck-checkup.html