Changes to Income Tax Withholding under the New Tax Bill

Index - https://steemit.com/tax/@alhofmeister/56nc4n-tax-blog-index

Introduction
Withholding rates for 2018 are changing to align with the new tax rates. A taxpayer will still be required to specify the amount of exemptions that they would like to claim (less deductions equates to more tax withheld).

Discussion
The IRS released Notice 1036 (linked below) announcing the new tax tables. To summarize, employees will see an increase in their take home pay, but will have less paid in to offset any income tax liability at the end of the year.

In the future, I'll go through a series of case studies examining the implications of these changes on hypothetical situations. For more details on the referenced tax tables, please see the links below.

References
https://www.irs.gov/pub/irs-pdf/p15.pdf
https://www.irs.gov/pub/irs-pdf/n1036.pdf

Disclosure
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.