Following the implementation of a new tax bill, American employees will likely benefit from a paycheck boost in February. This week, the U.S. Treasury released its income tax withholding tables which reflected changes caused by the Tax Cuts and Jobs Act. Overall, the new legislation increased the standard deduction, removed personal exemptions, and reduced individual income tax rates.
As you prepare for tax season this spring, you should review your W-4 to ensure that you’re deducting the right amount of taxes under this new legislation. If too little is withheld, you’ll owe taxes. The goal is to reside in the middle of those receiving big refunds, and those with big balances due. Read this article for additional information on tax changes and how to navigate the new landscape.