Employers may begin using these tables immediately, though they have until February 15 before they're required to do so.
The Internal Revenue Service is out with new withholding tables for companies to follow when calculating your paycheck going forward. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.
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. Ron Wyden of OR and Rep. Richard Neal of MA, both Democrats, said in a letter to acting IRS Commissioner David Kautter.
"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", CNN Money noted.
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To ensure an accurate calculation, taxpayers will have to enter their personal financial information into a calculator expected to be unveiled next month on the website IRS.gov.
Congressional Democrats are concerned that in making those changes, the IRS may have caved to pressure from the administration to deliver immediate tax savings to workers' paychecks while exposing taxpayers to higher tax bills in 2019.
The IRS is not issuing new Form W-4s ... yet.
The Treasury released its on Thursday, reflecting changes stemming from the.
This morning I've decided that the most important thing I can tell you about is a change to the tax table. You might not have bothered looking at it since then and you should take this opportunity to review your withholdings and see if it is time to make some changes. Treasury would achieve that, the lawmakers surmised in the letter, by pushing the IRS to change its formula for withholdings. But the IRS expects that many taxpayers will have to do so later this year, when the agency releases a revised version of the form.