Officials See Trump Tax Paycheck Windfall but Urge Accuracy Check

Geneva Matthews
January 14, 2018

The Treasury Department reports that approximately 90 percent of workers will instantly see larger paychecks once employers put the tax tables into practice, CNN Money reported.

Businesses across the country must adopt the changes by February 15.

Individual taxpayers aren't required to make any changes right now.

In the meantime, he urged filers who have complicated tax situations - i.e., anyone who is not single, childless and holding down just one job - to review the number of allowances they now take on their W4s once the IRS puts out its new withholding calculator by the end of February. The new law provides steep tax cuts for corporations and wealthy Americans while offering more modest reductions for most low- and middle-income families and individuals.

So now is a good time to take a second look at your tax withholding at work.

Acting IRS commissioner David Kautter said more information will be provided to Americans to help better understand the changes.

But the Internal Revenue Service said it is working on a new W-4 form, which a significant number of workers will have to fill out in order to benefit from the changes in 2019. And that results in a refund when they file their tax returns. Meanwhile, tax professionals say there are some other things you need to do now to get ready for tax season next year.

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.

"Republicans are using brute force and speed to implement a law that will deliver a financial blow to hardworking Americans all across the country", Sen.

"We think there will be over $1 trillion in growth, so I do think this will pay for itself", Mnuchin said at an event hosted by the Economic Club of Washington, dismissing estimates from the Joint Committee on Taxation that the tax cuts will increase USA deficits by $1.1 trillion to $1.5 trillion over 10 years.

The top Democrats on the House Ways and Means and the Senate Finance committees have raised concerns about whether the new tables could lead to systematic underwithholding. In a reflection of just how quickly the Treasury Department wants people to see the impact of tax reform on their paychecks, the IRS is coming out with the withholding tables even as it has not completed an update to the W-4.

The GAO has said Wyden's request must go through its usual review process before a decision to proceed is made.

Treasury Secretary Steven Mnuchin, speaks to reporters during a White House daily press briefing in the Brady press briefing room at the White House, in Washington, Thursday, Jan. 11, 2018.

Other reports by VideoGamingPros

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