It’s Time to Verify Your Tax Withholding

It’s Time to Verify Your Tax Withholding
Photo by Thomas Hamilton III/U.S. Army Europe

When is the last time you checked the tax withholding from your income sources?

 

Well, that’s too long ago.

 

Withholding tax tables change each year with routine adjustments. If you check, you may notice your federal withholding decreased this year. That could cause you to pay next year.

 

[RELATED: MOAA's Financial Calculators]

 

Here's a quick step-by-step approach:

  • Confirm your withholding status on your pay stubs and your retiree account statements from your service.
  • Note the actual amounts and compare to last year.
  • Run your numbers on a withholding calculator to check your situation.
  • Adjust your withholding as needed to ensure you are paying enough or not too much.

 

Withholding calculators can be found online at IRS.gov and eFile.com.

 

Seeking more financial news, links to other tax tips, and more resources? Visit MOAA.org/finance for all the latest.

 

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About the Author

Lt. Col. Shane Ostrom, USAF (Ret), CFP®
Lt. Col. Shane Ostrom, USAF (Ret), CFP®

Ostrom retired from the Air Force in 2000 and joined the MOAA team in 2006. His responsibilities include researching and answering member inquiries regarding military benefits, health care, survivor issues, and financial concerns.