How Much Should I Withhold in 2018?
How much to withhold has always been a complicated issue for taxpayers to resolve on their own. The new tax law will surely add much confusion to an already difficult process. TEA Tax Agency is ready and willing to help you navigate this potential minefield.
The IRS recently released updated income-tax withholding tables for 2018. These new tables reflect changes made by the newly passed tax reform legislation. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.
The new withholding charts, now shown on IRS.gov, display the new rates for employers to use during 2018. The IRS has asked employers to begin using the 2018 withholding tables as soon as possible, but by no later than Feb 15, 2018. Employers should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.
These new withholding tables are designed to work with the Forms W4 that you already have on file with your employer/s. This helps minimize burden on you and your employer/s. You do not have to do anything with your W4 at this time.
Employees should begin seeing increases in their paychecks sometime in February. 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.
If you have any questions feel free to reach out to TEA Tax for help.