New Tax Tables - You may want to complete a new W-4

New Tax Tables have been adjusted. File your new W-4

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

A paycheck checkup is especially important if you or your employees:

• Are a two-income family
• Have two or more jobs at the same time or who only work part of the year
• Claim credits like the child tax credit
• Have dependents age 17 or older
• Itemized deductions in 2017
• Have high income or a complex tax return
• Have a large tax refund or tax bill for 2017

For more information, please see IRS.gov/taxreform. For updated withholding tables, please visit the IRS newsroom and the IRS withholding table FAQs. 
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We hope this information helps you stay in compliance and thank you for being a valued client at McVay Business Services. 850-725-5696 - www.PensacolaFLTax.com - Mike@MikeMcVay.com
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