Washington– As a result of the Tax Cuts and Jobs Act, many Americans will see more money in their paychecks due to changes that include the increase in the standard deduction and lower tax rates and brackets. Treasury wants to encourage all taxpayers to check their paycheck withholdings to ensure they have the correct amount withheld for their personal tax profile.
We urge taxpayers to visit the IRS Withholding Calculator at IRS.gov/withholding to determine how many withholding allowances to claim. If the calculator results suggest a change in withholding, a taxpayer should complete a new W-4 form, downloadable from the IRS website, and submit it to his or her employer.
“This is a pivotal and exciting time for American workers,” said Treasury Secretary Steven Mnuchin. “The ‘paycheck checkup’ will allow employees to keep more of their hard earned money, which is why we passed the Tax Cuts and Jobs Act.”
For more information on changes in withholding rates and implications of the new Tax Cuts and Jobs Act please visit: