January 12, 2018
The Treasury Department released new withholding tables that ensure many Americans will see higher pay checks.
According to the department, 90-percent of Americans will see larger paychecks starting next month.
“This new guidance means that workers and their families will receive larger paychecks starting in February,” announced Treasury Secretary Steven Mnuchin.
The money going into the pockets of Americans is a direct result of the tax cuts promised by President Trump.
The changes implemented by the Treasury Department will work with existing W-4’s filed by employees.
This means that American workers don’t have to do anything to receive the savings.
Despite less withholding, it is also expected that tax returns will not be effected.
The average income tax return for 75% of Americans is $2800.
This is expected to remain the same for most American workers, even while their take home pay increases.
The Treasury is working on developing a withholding calculator that will be available in February when employers are required to have the changes made.
Lawmakers are encouraging American workers to check your check next month using the tables to ensure employers are adhering to new withholding guidelines.
Acting IRS commissioner David Kautter said more information will be provided to Americans to help better understand the changes.