Avoid a Tax Surprise – Act Now!
Recent tax laws have changed the amount of income taxes withheld from your paycheck.
If you don't withhold enough tax, you could have an unexpected tax bill when you file your 2018 income tax return.
Review your federal form W-4, Employee's Allowance Certificate, now to see if you have the right amount of federal and state income taxes withheld from your paycheck.
Steps to take:
- Use the withholding calculator at IRS.gov to estimate your federal withholding.
- Use the 2018 W-4 Worksheet for Idaho to estimate your Idaho withholding.
- Make any needed changes to Form W-4 and give it to your employer.
Estimate how much tax you'll owe
Law changes that affect 2018 tax returns
If you're receiving retirement or other sources of nonwage income:
- Determine if the income is taxable in Idaho.
- See the Idaho Income Tax Instructions for guidance
- Taxable income can be:
- Retirement income
- Generally, Idaho doesn't tax Social Security income.
- If the income is taxable, follow the next steps.
Note: The entity paying the nonwage income might not withhold Idaho tax. It's your responsibility to estimate the tax you'll owe and be prepared to pay it.
If the entity paying the nonwage income will withhold Idaho tax for you:
- Use the 2018 W-4 Worksheet for Idaho to determine:
- Your W-4 box 3 filing status
- Your Idaho allowance
- Any additional amount to withhold
- See lines 12-20 of Part C
- Consider each source of taxable income as a "job"
- Use the information from the worksheet to complete a W-4, or use the entity's W-4 substitute
If the entity paying the nonwage income won't withhold Idaho tax for you:
- Estimate your income tax for the nonwage income source:
- Estimate your annual income for the source
- Estimate your tax on the income. Use the 2018 income tax rate table for your return filing status, and find the total tax you'll owe.
- Pay the tax you owe.