Taxpayers should see tax cuts in February paychecks, Treasury secretary says

Taxpayers should see tax cuts in February paychecks, Treasury secretary says

Taxpayers should see tax cuts in February paychecks, Treasury secretary says

Most workers won't have to submit any tax forms to see a change in their withholding. Those changes, the senior IRS official said, will require most, but not all employees, to file new W4 forms later this year.

Employers must now rush to incorporate the new tax withholding tables into their payroll systems, a process that is expected to take several weeks.

Mr. Mnuchin pushed back on those concerns Thursday, saying the IRS usually issues its withholding tables every January, and the agency made a decision to wait until February to take into account the changes under the new tax system.

But for many taxpayers, they will need to assess whether the new tables really are withholding enough money so that they're not saddled with a big bill when they file their taxes next year.

The IRS and Treasury Department on Thursday issued new guidance on tax withholdings from employees" paychecks, a key step in its implementation of the new tax law that President TrumpDonald John TrumpHouse Democrat slams Donald Trump Jr. for "serious case of amnesia' after testimony Skier Lindsey Vonn: I don't want to represent Trump at Olympics Poll: 4 in 10 Republicans think senior Trump advisers had improper dealings with Russia MORE signed last month.

The new guidelines incorporate lower tax rates that were central to the tax overhaul from Congress's December tax overhaul.

Individual taxpayers aren't required to make any changes to theirForm W-4 right now.But the IRS expects that many taxpayers will have to do so later this year, when the agency releases a revised version of the form. Taxpayers who do not immediately receive larger paychecks will still benefit from the tax cuts at the end of the year, once they file their tax returns.

The government is requiring employers to begin using the new guidelines as soon as possible, but "no later than February 15". A senior IRS official said he expected that level to fall just a bit next year to around 73 percent.

Senator Ron Wyden of OR and Representative Richard E. Neal of MA, the top Democrats on the Senate and House tax writing committees, sent a letter to the Government Accountability Office asking it to analyze the 2018 withholding tables and determine whether they will result in "systematic under-withholding".

"Republicans are using brute force and speed to implement a law that will deliver a financial blow to hardworking Americans all across the country", Sen.

But that will be partially offset by new curbs on numerous tax breaks, including the elimination of personal exemptions and the new cap on state and local taxes. Ron Wyden (D-Ore.) said in response.

And roughly three-quarters of tax filers are overwithheld because they take too few allowances.

Treasury Secretary Steven Mnuchin at the White House press briefing on Thursday dismissed suspicions that administration is "juicing" the tables as a "ridiculous charge".

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