Treasury releases withholding tables for new tax law

Treasury releases withholding tables for new tax law

Treasury releases withholding tables for new tax law

The IRS doesn't expect that to change much under the new tax law given the preference filers have shown for getting big refunds, rather than just breaking even or having to cut a new check to Uncle Sam when they file their returns.

"I want to make sure that consumers who are trading this understand the risks because I am concerned that consumers could get hurt", he said.

The Treasury Department and IRS are designing new W-4 forms that millions of Americans will probably be able to fill out later this year to make their tax withholdings more accurate in the future, but they will not be ready in time for the paycheck adjustments next month.

"Under our laws, if you have a wallet to own bitcoins, that company has the same obligation as a bank to know your customer", Treasury Secretary Steven Mnuchin said Friday.

But these tax withholding decisions are based on tax forms Americans file with their employers, known as W-4s, that were written to apply to an outdated tax system.

Congressional Democrats are concerned that in making those changes, the IRS may have caved to pressure from the administration to deliver immediate tax savings to workers' paychecks while exposing taxpayers to higher tax bills in 2019.

Regarding central banks that are considering issuing digital currencies instead of physical currencies, Mnuchin said: "The Fed and we don't think there's any need for that at this point".


This morning I've decided that the most important thing I can tell you about is a change to the tax table.

In a news release by the Treasury Department, employers are encouraged to implement the new withholding tables expeditiously but should do so no later than February 15, 2018.

The top Democrats on the House Ways and Means and the Senate Finance committees have raised concerns about whether the new tables could lead to systematic underwithholding.

That also means employees can't assume that the new, lower withholding rates will cover everything they owe Uncle Sam for this year.

For example, there is a new $10,000 limit on the amount of state and local taxes a household can deduct from federal income.

In the meantime, he urged filers who have complicated tax situations - i.e., anyone who is not single, childless and holding down just one job - to review the number of allowances they now take on their W4s once the IRS puts out its new withholding calculator by the end of February. There are new tax credits while other mainstays - like the $4,050 personal exemption - are gone.

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