With over a hundred changes made by the Tax Cuts and Jobs Act, your taxes could look a bit different come April. You may have not owed taxes in years prior, but that could change due to the new limits placed on tax deductions and tax deductions that were eliminated due to the new tax reform. With these changes, it’s important to make sure you check your withholding’s and check to see if the deductions you took the previous year are still there.
One of the biggest changes made by the Tax Cuts and Jobs Act was that the tax rates were decreased which meant more money was showing up on your paycheck. On average, tax rates were reduced from about 1% to 3% for most taxpayers. The IRS did adjust the withholding tables that employers use to produce the correct amount of tax withholding. Make sure that your current withholdings are correct and that your employer has the correct information.
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Additional Readings
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