News / Article

Bigger paychecks could have bigger tax bill, experts warn

Source: https://nbcnews.com/business/taxes/bigger-paychecks-could-have-bigger-tax-bill-experts-warn-n844156 - Feb 3, 2018

Americans could start seeing a bump in their paychecks as early as this week thanks to the new tax legislation, but lurking in that extra $50 or $100 is the prospect of a big tax bill come April 2019 for some taxpayers.

On January 11, the IRS published revised withholding tables, which payroll administrators use as guidelines when determining how much of a worker’s paycheck should be set aside to pay federal income taxes. The use of these tables is being phased in over the next couple of weeks; exactly when a worker might notice a difference in take-home pay depends on how often and when they are paid, the agency said.

Category: General Business