New W-4 and IRS Tax Withholding Calculator

The IRS has released the 2018 W-4, and has updated the IRS withholding calculator in order to assist taxpayers to determine the appropriate withholding allowances for the 2018 tax year.

While the IRS has stated that employees are not required to make any changes or submit a new 2018 W-4 form, it is strongly advised that employees review their withholding to make sure that it is accurate.

The IRS withholding calculator (to aid with determining the correct withholdings) can be found at the following link:  IRS tax withholding calculator

Take a few minutes and plan ahead to make using the calculator on IRS.gov as easy as possible.

• Gather your most recent pay stub from work.  Check to make sure it reflects the amount of Federal income tax that you have had withheld so far in 2018.
• Have a completed copy of your 2017 (or possibly 2016) tax return handy.  Information on that return can help you estimate income and other items for 2018.  However, note that the new tax law made significant changes to itemized deductions.
• Keep in mind the Withholding Calculator results are only as accurate as the information entered.  If your circumstances change during the year, come back to the calculator to make sure your withholding is still correct.
• The Withholding Calculator does not request personally-identifiable information such as name, Social Security number, address or bank account numbers.  The IRS does not save or record the information entered on the calculator.  As always, watch out for tax scams, especially via email or phone calls and be especially alert to cybercriminals impersonating the IRS.  The IRS does not send emails related to the calculator or the information entered.
• Use the results from the Withholding Calculator to determine if you should complete a new Form W-4 and, if so, what information to put on a new Form W-4.  There is no need to complete the worksheets that accompany Form W-4 if the calculator is used.
• As a general rule, the fewer withholding allowances you enter on the Form W-4 the higher your tax withholding will be.  Entering "0" or "1" on line 5 of the W-4 means more tax will be withheld.  Entering a bigger number means less tax withholding, resulting in a smaller tax refund or potentially a tax bill or penalty.
• If you complete a new Form W-4, you should submit it to your employer as soon as possible. With withholding occurring throughout the year, it's better to take this step early on. University employees may download and complete a Form W-4 and forward it to Human Resources in room 222 of the Administration Bldg. (ADMN 222)
• University employees may complete a new Form W-4 online through webBASIS by following these steps:  Login utilizing Employee/Affiliate Access → My Pay  → Income Tax Withholding (W4)  → Check box □  after you have "Read W4  → Make any changes to Federal or State Income Taxing Options  → Click Validate  → Check box □ "Under penalties of perjury, I declare that"  → Then click "SAVE" to make your changes.

The University of Arkansas is not legally allowed to provide any form of tax advice. We strongly encourage you to speak directly with your personal tax advisor if you have questions regarding how the Tax Cuts & Job Act and the new withholding tables will affect you.