New Tax Withholding Tables Mean Bigger Paychecks: GOP
- Author: Megan Austin Jan 14, 2018,
Jan 14, 2018, 0:12
Treasury and Internal Revenue Service officials made the predictions while releasing new tax withholding tables, which US employers must begin using by February 15 to determine how much federal tax gets subtracted from employee wages under the new tax law.
The Internal Revenue Service published the new income-tax withholding tables to conform to the sweeping $1.5 trillion tax overhaul, the first major rewrite of the tax code in three decades, which became law last month and took effect Jan 1.
The Trump administration on Thursday said most US workers will see bigger paychecks in February, as a result of the Republican tax overhaul, but many will need to make sure taxes are withheld accurately with an online calculator that does not yet exist.
Individual taxpayers aren't required to make any changes to their Form W-4 right now.
The government said that workers will not have to fill out new W-4 forms to take advantage of the changes this year. "Our objective is not to have taxpayers over-withheld, so they owe money at the end of the year", Mnuchin said Thursday during the news conference. "Taxpayers can not make these changes until the revised Form W-4 is published, which the IRS has announced will be forthcoming in the coming months".
So now is a good time to take a second look at your tax withholding at work. Among those changes are an increase in the standard deduction, new tax brackets and more.
"We think there will be over $1 trillion in growth, so I do think this will pay for itself", Mnuchin said at an event hosted by the Economic Club of Washington, dismissing estimates from the Joint Committee on Taxation that the tax cuts will increase USA deficits by $1.1 trillion to $1.5 trillion over 10 years.
Jesse Lingard can't stop scoring wonderful goals for Manchester United
They're two clear of Cardiff City and Britsol City for third place and seven clear of seventh-place Sheffield United. Lukaku was next to head wide on 55 minutes, before Thomas Lawrence forced a diving save from Romero.
The updated withholding information, posted today on IRS.gov, shows the new rates for employers to use during 2018.
"In 2019, the IRS anticipates making further changes involving withholding", the agency said in the FAQs. Still, government officials warned employees to re-assess their own withholding to avoid upsetting their personal tax plans.
In their letter, Wyden and Neal said the IRS lacks independent and nonpolitical leadership.
Currently, the IRS is revising that tool to reflect the most recent tax law changes.
The U.S. Treasury Department released the new withholding tables under the Tax Cuts and Jobs Act, drawing the praise of at least one Louisiana congressman.
Texts of Notice 1036, the FAQs, and IR-2018-05 are in TaxCore.