Officials See Trump Tax Paycheck Windfall but Urge Accuracy Check

Trevor Jackson
January 14, 2018

Taking the first concrete step toward the Republican tax plan's promise of fatter paychecks for millions, the Trump administration on Thursday issued new guidelines for how much employers should withhold as taxes from workers' pay.

Lawmakers are encouraging American workers to check your check next month using the tables to ensure employers are adhering to new withholding guidelines.

"We have reviewed this very carefully, and based upon last year's withholding tables, approximately 76 percent of taxpayers were withheld so that they had refunds at the end of the year". In a reflection of just how quickly the Treasury Department wants people to see the impact of tax reform on their paychecks, the IRS is coming out with the withholding tables even as it has not completed an update to the W-4. That means employees could start seeing the changes reflected in their paychecks next month, the IRS said.

In the meantime, he urged filers who have complicated tax situations - i.e., anyone who is not single, childless and holding down just one job - to review the number of allowances they now take on their W4s once the IRS puts out its new withholding calculator by the end of February. Setting up a new withholding system is expected to take most of 2018.

The major changes affecting individuals include new tax brackets, (mostly) lower income tax rates, a near-doubling of the standard deduction and the elimination of both personal exemptions as well as many itemized deductions. "We'll work with payroll providers; we'll work with companies, we'll do education sessions, so that taxpayers are properly withheld".

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This morning I've decided that the most important thing I can tell you about is a change to the tax table.

Treasury Secretary Steven Mnuchin at the White House press briefing on Thursday dismissed suspicions that administration is "juicing" the tables as a "ridiculous charge".

"In 2019, the IRS anticipates making further changes involving withholding", the agency said in the FAQs. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.

Most people fill out their W-4 form when they're hired at a new job and don't change it unless they get married, have kids, get divorced or experience other life-changing situations. "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 effort will be created to help workers ensure that they are not having too much or too little withholding taken out of their pay.

Other reports by TheDailyFarc

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