Law Changes for 2018 Affect Withholding

April 10, 2018

The Tax Cuts and Jobs Act made major changes to the tax law. Because of this, you should do a paycheck checkup using the Withholding Estimator on IRS.gov.

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

See Steps to Take Now to Get a Jump on Next Year’s Taxes for more information.