Tax Bill question

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When will I see the results in my paychecks?

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Next Friday if you work for AT&T.

Your first pay period in 2018 for everyone else.

ETA - Apparently the IRS won't have the tables ready until February, so we're stuck until then.

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Probably about the same time your insurance premiums go up.

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Thanks Obama!

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What cut will show in the amount of the check? I'm not clear on that.

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There's no clear answer considering everyone's payroll systems are different.

Technically you won’t unless you change your withholding.

You’ll have to do the math and estimate a new withholding to see an actual increase in your paycheck.

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Technically you won’t unless you change your withholding. You’ll have to do the math and estimate a new withholding to see an actual increase in your paycheck.

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Incorrect. The tax withholding tables are supplied to employers each year and are based on the number of dependents claimed on the W-4 and the anticipated annual earnings. The tables will change therefore the employee who had 1 dependent in 2017 will take home more with 1 dependent in 2018.

Ahh, good to know.

So we don’t have to take any real action then.

Cool.

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Nah, payroll systems are based on IRS tables and your W-4. Once the tables are updated, your check should reflect accordingly.

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Withholding tables are based on earnings, filing status, exemptions, and claiming the standard deduction.

Exemptions are no more... so... it will be interesting to see how the withholding tables change. It's easy enough to update for the earning and standard deduction changes... and filing status won't change.

But the whole concept of single-2, married-5, etc is based highly on exemptions. And the child tax credit, which is kind of the tradeoff for exemptions, doesn't address non-child dependents.