Updated 2018 Withholding Tables Now Available

[nwtaxlady]

Some are looking for the Table with the amounts already filled in so they don't have to do the calculations based upon phone calls received today.

Yes, that would be me! I want the table to look it up... no calculations (easy to make an error).

[TAX4US]

Some are looking for the Table with the amounts already filled in so they don't have to do the calculations based upon phone calls received today.

[nwtaxlady]

https://www.irs.gov/pub/irs-pdf/n1036.pdf

Thank you Kathy!

Will they be updating the Pub 15, Circular E? All I see is the one for use in 2017.

[kathyc2]

That's all I can find, is articles about the New withholding tax tables. But where are they? Does anyone have a link to it?

Thanks

https://www.irs.gov/pub/irs-pdf/n1036.pdf

[nwtaxlady]

Thank you Kathy. It sounds like the Withholding Tables is something one would find in the "Industry News" part of the website.

That's all I can find, is articles about the New withholding tax tables. But where are they? Does anyone have a link to it?

Thanks

[John of PA]

Thank you Kathy. It sounds like the Withholding Tables is something one would find in the "Industry News" part of the website.

[nwtaxlady]

link?

Can someone post a link to IRS website for the NEW updated withholding table. Or new updated Circular E.

I am just not finding it.

Thanks

[Snaggletooth]

Notice 1036

Are these tables FINAL for use beginning immediately? (FINAL means no changes are known. They can, of course, change anything they want at some later date)

I have told my payroll customer to not expect any change in their withholding until February.

[kathyc2]

THE TAX BOOK has a very good % method withholding tables (% method is where you do not have to worry about going off the chart). Does anyone know how to find it at the TTB website?

The w/h tables and HR1 updates are here: https://www.thetaxbook.com/update_service_news.asp

[John of PA]

THE TAX BOOK has a very good % method withholding tables (% method is where you do not have to worry about going off the chart). Does anyone know how to find it at the TTB website?

[kathyc2]

I looked mostly at TP's that are currently in th 28% or lower bracket and have come up with the following:

TP's that take standard deduction will have slightly lower refunds in 2018 due to new withholding tables.
Those that itemize in 2017 but won't meet the higher threshold in 2018 will see a more significant reduction in refund.
Most that claim child tax credit should see a higher refund in 2018, although some with 2017 itemized will see lower refund.

TP's that are very close to break even on 2017 return and want to be assured of not having a balance due 2018 may want to look at changing exemptions on W4.

[kathyc2]

Ah! Figured it out. For single the 2017 base of 2,300 is the standard deduction of 6,350 less personal exemption of 4,050. Not sure why they go at it that way, other than if TP has no income other than wage income that doesn't vary much during the year they will always have a refund. If they claim 1 on W4, the refund would work out to marginal rate x personal exemption of 4,050.

The 2018 base of 3,700 is 1,400 higher than 2017. This comes from the amount without HR1 would have been 50 higher at 2,350 (6500 - 4150). Then they added 1,350 which is the difference of new 12,000 less 2018 amounts before of 10,650 (6500 + 4150).

So, in the case of the simple return of standard deduction and only W-2 income, 2018 refunds will be slightly lower. For someone in 15% marginal refund of 607 (4,050 x .15) will go to 498 (4,150 x .12).

Works out the same for married if you presume 2 exemptions.

[AZUKHiker]

I prefer formulas set up to do my own analysis.

If you look at Table 7 for annual payroll charts start as income over 2,300 for single and 8,650 for married. These numbers change to 3,700 and 11,550 for 2018. Even for 2017 these numbers don't seem to be to have any significance to me as to a relationship to standard deductions, but maybe I'm missing something???

They won't make sense because they have had to fudge the withholding calculations using the 2017 W4 exemptions claimed.

[kathyc2]

I believe IRS is going to have a new W4 calculator by Feb 15th.

I prefer formulas set up to do my own analysis.

If you look at Table 7 for annual payroll charts start as income over 2,300 for single and 8,650 for married. These numbers change to 3,700 and 11,550 for 2018. Even for 2017 these numbers don't seem to be to have any significance to me as to a relationship to standard deductions, but maybe I'm missing something???

[ATSMAN]

Already have my spreadsheets set up so I can do a quick calc when preparing returns if the new withholding will get them in trouble for 2018 file 2019 returns.

I believe IRS is going to have a new W4 calculator by Feb 15th.