The changes made by the Tax Cuts and Jobs Act include changes to tax rates and tax rate brackets, an increase in the standard deduction, repeal of personal exemptions, an increase in the child tax credit, and the elimination or limitation of many itemized deductions. These changes will affect everyone, but will not affect everyone equally. The only way to make sure you’re not over or under withholding on your paycheck is to run a projection.
In response to these changes, the IRS has released an online Tax Withholding Calculator that helps people determine what their appropriate level of withholding is.
Read our full alert to learn more about these new tools.