IRS scale new for pay to be withheld

Marco Green
January 13, 2018

Treasury Secretary Steven Mnuchin said the government expects about 90 percent of workers to see an increase in their take-home pay.

The tables lay out how much tax to withhold or not withhold from paychecks.

These tax changes are all scheduled to expire after 2025, though Republicans have said they want to make them permanent. Employers should begin using the new withholding tables as soon as possible, but not later than February 15, according to the IRS notice issued Thursday. He is answering reports questions on NAFTA, tax withholding tables (that are just released) that will guide employers on the amount to withhold from pay checks, and on other matters dealing with the economy.

"The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid - generally weekly, biweekly or monthly", the IRS writes online.

On that subject of speculation, Mnuchin said that he is concerned about the issue as well.

The W-4 is the form you filled out when you started your job in which you indicated the federal income tax you wanted withheld from your paycheck. Currently, 76 percent of Americans who file their taxes receive a tax refund.

"I can assure you we will audit real estate taxes this year", he added. Senator Elizabeth Warren, a Democrat, asked Thorson's office to review whether Treasury resources had been used to research the tax plan, and why no analysis had been released to the public or Congress. If they determine they are paying too much or too little in taxes, based on the size of their family or other variables, they can direct their employer to make changes. There are also new limits on the mortgage interest deduction, and the child tax credit was expanded.

To help you get as close to withholding parity as possible, the IRS has long made a withholding tax calculator available.

Mr. Mnuchin also dismissed an idea, floated by one Democratic congressman, for high-tax states to skirt new rules capping state and local tax deductions by treating those taxes as charitable contributions.

Nonpartisan tax experts project that the law will bring lower taxes for the great majority of Americans, though not all.

Other reports by Click Lancashire

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