There is an updated payroll withholding tax calculator available on the IRS.gov website. Employees can complete the new version of Form W-4, Employee’s Withholding Allowance Certificate, and submit it to their employers.
The Tax Cuts and Jobs Act should not impact most 2017 tax returns due in April. However, 2018 tax returns will be impacted as a result of the increased standard deduction, removing personal exemptions, increasing child tax credit, changing tax rates, etc.
The new tax law changes may result in more taxes due from some individuals and less due from others. It’s important to withhold an accurate amount of tax from your paychecks in order to avoid a large bill with your 2018 tax return. Alternatively, if the tax bill positively impacts you, you may prefer to receive larger paychecks now versus receiving a refund with your return.