Time for a Withholding Tax Checkup: Treasury Releases New Withholding Calculator

By Jeffrey M. Glassman on March 8, 2018


In December 2017, Congress enacted sweeping changes to the federal tax laws. There has been a great deal of discussion as to whether American workers would see significantly greater take-home pay as a result of the new tax laws. In January, the IRS released new withholding tables to help employers determine how much to withhold from their workers’ paychecks. Employers were supposed to implement the new withholding changes by February 15th. Now the Treasury Department has released a withholding calculator for American workers to determine if employers are withholding the correct amount. That calculator can be accessed here.

By now, taxpayers should be seeing some variation on their paychecks. But just because taxpayers are seeing these changes, does not necessarily mean that Uncle Sam is getting his correct share. As with any new law, there could be hiccups with implementation.

We encourage taxpayers to review their withholdings through Treasury’s calculator. Taxpayers are required to withhold taxes during the year. Failures to withhold sufficient taxes could subject taxpayers to underpayment penalties. If after using the calculator taxpayers discover that not enough taxes are being withheld, taxpayers should prepare and submit a new Form W-4 to their employers.

The alternative—an unpleasant surprise come 2018 tax return season—can be avoided.


The material contained within Meadows Collier Tax Blog - MC Talks Tax and any attached or referenced pages, has been written or gathered by Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P., for information purposes only. It is not intended to be and is not considered to be legal advice. Transmission is not intended to create and receipt does not establish an attorney-client relationship. Legal advice of any nature should be sought from legal counsel.

© Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P.901 Main Street, Suite 3700, Dallas Texas 75202phone (214) 744-3700 | toll-free (800) 451-0093 | fax (214) 747-3732Hosted on the FirmWise Platform