Mar 06 2018
Last month the new withholdings required by the Tax Cuts and Jobs Act went into effect. For most Americans, the net effect of this change will be seen in two places on your pay stub - illustrated below.
- This is the total amount of money you keep from every paycheck after federal income taxes and other deductions. This amount will be larger than your net pay prior to the Tax Cuts and Jobs Act.
- This is the amount of your pay the federal government takes from every paycheck for income taxes. This amount will be lower than pay stubs prior to the Tax Cuts and Jobs Act.
Also, be sure to double check that the right amount of taxes are being withheld from your paycheck at work. To help with this, the IRS has created a tax witholding calculator. The calculator is available here along with helpful tips and information as well as W-4 forms should you need to complete a new one.
There are more savings to be realized from the Tax Cuts and Jobs Act when you file your 2018 taxes next year.
The standard deduction is doubled and according to IRS data about 81% of filers in my district currently claim the standard deduction. Given this and that the IRS also reports that the average income in Florida District 11 is $47,145 - The majority of individuals in District 11 will be better off by an average of $1,961.60 by taking the new standard deduction in the future