You may have just finished your 2017 taxes, but it is not too early to start thinking about next year’s tax filing. As part of the Tax Cuts and Jobs Act, changes to eligible deductions – such as a new $10,000 limit on the deduction for state and local taxes – could have a significant impact on your tax liability in 2018. Check with your tax advisor to determine how the Act may impact you.
Although you are not required to take any action, you may wish to review and adjust your withholdings for 2018 to avoid a higher than expected tax bill next year. Use the updated tax withholding calculator on the IRS website to decide whether you need to take any action. The IRS encourages everyone to use the calculator to perform a quick “paycheck checkup,” and to make any necessary changes to your W-4, Employee Withholding Allowance Certificate. For more information, including links to YouTube videos, see the "Paycheck Checkup" article on the IRS website.
UC has updated its payroll systems with the new tax tables, and changes are reflected in paychecks and UCRP benefit checks issued on or after February 1, 2018.