Officials See Trump Tax Paycheck Windfall but Urge Accuracy Check

Casey Dawson
January 14, 2018

While employers can begin doing this voluntarily, they will have to comply with the new guidance by February 15.

The Internal Revenue Service today released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. With these new guidelines, companies can start adjusting employee paychecks. Ron Wyden of OR and Rep. Richard Neal of MA, both Democrats, said in a letter to acting IRS Commissioner David Kautter. "Our objective is not to have taxpayers over-withheld, so they owe money at the end of the year", Mnuchin said Thursday during the news conference. Withholding allowance amounts were retained in employer withholding calculations for 2018, with the optional supplemental wage withholding rate set at 22 percent and the amount of additional wages to be added to tax calculations per pay period to nonresident aliens more than tripled, according to Notice 1036.

Individual taxpayers aren't required to make any changes right now. "Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation". Personal exemptions are a core feature of the current withholding system, but now that they are eliminated, "it's necessary to build a new approach to withholding, which will take some time", the senior IRS official said.

For people with simpler tax situations, the new tables are created to produce the correct amount of tax withholding.

"In 2019, the IRS anticipates making further changes involving withholding", the agency said in the FAQs.

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The 31-year-old outfielder batted.279/.363/.486 with 28 home runs and 88 RBI over 156 games for the Pirates last season. When Bruce joined the Indians , it marked the first time that he had played for a team in the American League.

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.

Treasury released a brief one-page analysis of the plan on December 11, claiming the proposal would increase tax revenue by about $1.8 trillion over 10 years.

"We would encourage every taxpayer to run their information through the calculator".

"I look forward to GAO's independent review of these tables, which will expose whether the Trump administration is tampering with Americans' paychecks, resulting in a whopping tax bill next year", Wyden said.

Later this year, the IRS expects to revise the Form W-4, which employees use to ultimately determine how much of their pay is withheld toward income taxes.

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