Tax law changes from 2018 to 2020

Forum|Forum|5 years ago
March 21, 2021
1 reply
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When the trump tax law went into effect, we were hit with a large tax burden and had to pay a lot extra. We subsequently added more to our withholdings to compensate. Last year (2019) we had a small refund, but this year (2020) we have a very large refund. Our income did not change appreciably, nor did anything else about our taxes. What, if anything, changed over the last three years? We would like to reduce our withholdings, but not sure where taxes will be next year, i.e., we would rather have the money in our paychecks instead of a large tax refund.

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Best answer by DavidD66

The IRS has been tinkering with the withholding tables (how much tax is withheld based on your income and filing status) since the tax changes went in to effect in 2018. Both TurboTax and the IRS have withholding calculators that you can use to determine whether or not your having an appropriate amount withheld. Moreover, they will instruct you on what to change if you are having to much or too little withheld. For more information, see:

IRS Tax Withholding Estimator

How do I update my 2020 withholdings and print a new W-4?

Note: If you received some or all of the stimulus money in the form of the Recovery Rebate Credit on your 2020 tax return, it would have increased your refund on a one time basis.

DavidD66Answer

Level 15

IRS Tax Withholding Estimator

How do I update my 2020 withholdings and print a new W-4?

Note: If you received some or all of the stimulus money in the form of the Recovery Rebate Credit on your 2020 tax return, it would have increased your refund on a one time basis.

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