News

Announcements and Updates

How much will you get? Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February

IR-2018-05, Jan. 11, 2018

WASHINGTON — 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. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law.

The updated withholding information, posted today on IRS.gov, shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.

Many employees will begin to see increases in their paychecks to reflect the new law 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. Make sure your boss knows they’re out!

https://www.irs.gov/newsroom/updated-2018-withholding-tables-now-available-taxpayers-could-see-paycheck-changes-by-february

About Notice 1036, Early Release Copies of the Percentage Method Tables for Income Tax Withholding

Click here for tables:

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

IRS WITHHOLDING CALCULATOR

Due to the tax law changes signed into law on December 22, 2017, the IRS withholding calculator is currently unavailable. The IRS will update the calculator as soon as updated withholding information is available.

When available it will be here:

https://www.irs.gov/individuals/irs-withholding-calculator

 steve@stevesimsea.com