What the new tax withholding tables mean for your take-home pay

JustForex

Personal Finance


Tom Williams | CQ Roll Call | Getty Images

Treasury Secretary Steven Mnuchin speaks during a news conference in the Capitol where GOP senators said families and small businesses would benefit from tax reform on November 7, 2017.

The tax overhaul is likely giving your paycheck a boost come February.

So now is a good time to take a second look at your tax withholding at work.

The Treasury released its income tax withholding tables on Thursday, reflecting changes stemming from the Tax Cuts and Jobs Act. In all, the new legislation has increased the standard deduction, done away with personal exemptions and trimmed individual income tax rates.

This means you could start seeing changes to your paychecks as early as next month.

You should take a look your withholding to make sure you’re deducting the correct amount of taxes under the new legislation.

“You don’t want a big refund, where you’re giving an interest-free loan to the government,” said Melissa Labant, director of tax policy and advocacy at the American Institute of Certified Public Accountants.

“You also don’t want a big balance due,” she said.



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