Congressman Matt Gaetz Issues Statement on the New IRS Tax Withholding Tables
Washington, D.C. — Today, Congressman Matt Gaetz (R-FL) issued the following statement on IRS withholding under the recently-enacted tax reform law:
"Most Americans had a noticeable bump in their paychecks this last February, when the new IRS tax withholding tables took effect. If you haven’t been looking, make sure to check your check!
Federal tax withholding is the overall amount of pay the federal government takes from every paycheck. Under the Tax Cuts and Jobs Act, the federal government will take less because the law lowers tax rates for Americans of all income levels and nearly doubles the standard deduction.
More than 4 million employees have received $4 billion in bonuses, with more than $140 million being invested back into the U.S., and 90 percent of American workers seeing more take-home pay thanks to the new withholding tables," Rep. Gaetz said.
For most taxpayers, there are two key places on a typical pay stub where you will see the effect of the Tax Cuts and Jobs Act:
1. Net Pay: This is the total amount of money you keep from every paycheck after federal income taxes and other deductions. With the Tax Cuts and Jobs Act, this number will be larger due to the lower tax rates and significantly larger standard deduction.
2. Federal Tax Withholding: This is the amount of your pay the federal government takes from every paycheck for income taxes. With the Tax Cuts and Jobs Act, this number will go down in comparison to your old pay stubs.
Check out the IRS new income tax withholding calculator (https://apps.irs.gov/app/withholdingcalculator/) to make sure you're deducting the correct amount of taxes under the new legislation.
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