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New Tax Law affects federal withholding calculations for 2018


The Tax Cuts and Jobs Act made major changes to the tax law. Because of this, you and your employees should do a paycheck
checkup
 using the Withholding Calculator on IRS.gov and, if necessary, complete a new W-4 form. The calculator will help
determine the right amount of withholding and can help prevent having too little (or too much) tax withheld.

Recent changes affecting withholding include:

  • Reduced tax rates 
  • Elimination of personal exemptions
  • Increased standard deductions: $12,000 for singles, $18,000 for heads of households and $24,000 for married couples filing jointly
  • Increased child tax credit: $2,000 per qualifying child and a new $500 credit for other qualifying dependents 
  • Changes to itemized deductions

For more information, please see IRS.gov/taxreform. For updated withholding tables,
please visit the 
IRS newsroom and the IRS withholding table FAQs