EXCITING NEWS – You May See an Increase in Your Take Home Pay!
90% of people will see an increase in take home pay as early as next month!
How Will I Know if I am One of the 90%?
The U.S Treasury Department has recently released new withholding tables based on the tax reform bill. The withholding tables are used by employers to determine how much to withhold from employee paychecks. The new withholding tables have been updated to reflect changes in tax rates and brackets, the increased standard deduction and the repeal of personal exemptions. Most people should see increases to their take home pay as a result of the new withholding tables by mid-February.
The IRS is currently working on a new form W4 that will more fully reflect the new law and provide taxpayers information to determine if they should adjust their withholding. They are expecting to have an updated W4 available by the end of February. They also plan to revise the withholding calculator on IRS.gov.
You can see the new Income Tax Withholding tables on the IRS website here which outline the tax withholding based on resident status, adjustments, and what the change will be based on your pay-period frequency.
People who itemize deductions, married couples with two incomes, individuals with multiple jobs, or families with 3 or more children are encouraged to review their new withholding amount and their tax situation to make sure they are not under-withholding as a result of the new tables.
If you want to be sure you’re not under withholding as a result of the new tables, contact your CPA to estimate your tax under the new laws. You can adjust your W4 to ensure you continue to have the correct withholding. Contact Christianson today and speak with one of our experts!