In the next few weeks, you will likely see a little extra in your paycheck from work. This is due to the Tax Bill that was passed at the end of the year. Due to the reduced tax bracket rates, the Treasury Department has announced changes to the withholding tables that employers use to calculate the tax to be withheld for federal income taxes from your paycheck.
With the updated tables, employers may utilize the previous W-4 that you submitted to them. What this doesn't take into consideration is the increase in the standard deduction and the elimination of the personal exemptions. Therefore you will want to make sure that any adjustments in withholding will not leave a larger than expected tax bill when you file your taxes in 2019.
If you have any questions related tax planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.
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