All U.S. workers should do this immediately, IRS advises

NewsThe IRS encourages workers to check their withholdings periodically, particularly after a major life or income change or when tax law changes. tattywelshie | Getty ImagesThere are less than four months left in the year and now is the time for employees to check payroll information ahead of next year’s tax season.The Internal Revenue Service is reminding workers to check their withholdings to determine whether too much or too little federal income tax is being withheld. Making those adjustments now, the tax agency said, can prevent smaller paychecks now or a higher bill at tax time.READ MORE: IRS announces interest rate updateFederal income tax is generally paid throughout the year as it as earned. Employers withhold federal income tax from each paycheck based on the employee’s earnings and information provided in the W-4 form. Withhold too much and you get a smaller paycheck but potential for a bigger refund at tax time. Withhold too little and you could owe more in April.The IRS encourages workers to check their withholdings periodically, particularly after a major life or income change or a change in tax law. Events that may affect withholding include starting or leaving a job, working multiple jobs, marriage, divorce, the birth or adoption of a child, or a significant change in income.The IRS provides a Withholding Estimator that can help workers determine whether they are having too much or too little federal income tax withheld. The free online tool uses information such as recent pay statements, income, deductions, and credits to estimate withholdings. If an adjustment is needed, workers can use the estimator results to help complete a new Form W-4 and submit it to their employer. Leada Gore is a Senior Managing Producer for the Advance Local trending team, covering finance, government and consumer issues. She worked as a Managing Producer for AL.com, starting at the site in 2013 as the...