Treasury: 90% of wage earners will likely see higher take-home pay
- Author: Tracy Klein Jan 14, 2018,
Jan 14, 2018, 0:11
Workers will see changes in their February paychecks once employers adopt the new guidance, the news release said.
Businesses across the country must adopt the changes by February 15. "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". The new law provides steep tax cuts for corporations and wealthy Americans while offering more modest reductions for most low- and middle-income families and individuals.
Such a calculator will ask for anonymous inputs - for example, your income, number of dependents and other pieces of information that help determine whether you might be eligible for various tax breaks.
Mnuchin said he was concerned about making sure that consumers fully understood the risks of investing in bitcoin.
That's not bad advice for any year when there are big tax changes but it's especially critical this year.
But the taxing service did note that the new tax rates will require a new approach to the W-4 forms and that it should have the new forms by 2019. And that results in a refund when they file their tax returns. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year and share information on changes in the new tax law that impact withholding.
Too good to be true?
Lisa Zarlenga, a partner at Steptoe & Johnson LLP in Washington, told Bloomberg Tax in an email that "the tax law generally reduced individuals' tax liabilities, so I expected that withholding would go down".
"Republicans are using brute force and speed to implement a law that will deliver a financial blow to hardworking Americans all across the country", Sen.
Earlier this week, Wyden and Rep. Richard Neal, the top Democrat on the House tax-writing committee, asked the Government Accountability Office to analyze the new IRS tables to see if they might lead to systematic underwithholding of federal taxes from paychecks. The tables reflect the rate changes made in the tax cut legislation passed by Congress in December. "With the child tax credit, like, 'Is it true that will increase?' Yes, it increases, but not with the 2017 tax year, for the 2018 tax year", said Curtis.
The GAO is reviewing Wyden and Neal's request, agency spokesman Charles Young said in a January 11 email.