Tax bill beginning to deliver bigger paychecks to workers
Workers are starting to see more take-home pay as employers implement the new withholding guidelines from the
Treasury Secretary
How much extra cash? It depends on several factors, such as workers' income, how often they are paid and the number of withholdings allowances they claim on their
Those whose employers were quick to make the change welcomed the extra money -- anywhere from a few dollars to a few hundred dollars.
"I have heard time and again that the middle class is getting crumbs, but I'll take it!" Love said by email.
And
According to the nonpartisan Tax Policy Center, a middle-income household would on average get a tax cut of
That's because lower tax withholding on paychecks is just a piece of a complicated set of changes to tax law that the
As a result, taxpayers may find they are unintentionally over- or underwithholding for their taxes if they don't do some legwork.
Senate Finance Committee Democrats have asked the Government Accountability Office to analyze the new tables to make sure workers' paychecks weren't being systematically underwithheld, which would make paychecks bigger now but lead to a bigger bill at tax time. Mnuchin, speaking at a
Still, experts suggest that all taxpayers take a look the new
For most people though, no change will be needed.
The
"If they haven't done it before, this is a really good year to talk to your tax professional," said
The
No worker should anticipate a negative impact from the new withholding table if their pay remained the same, said
However, someone who got a raise may face a higher tax rate as a result. And some corporations have been handing out bonuses and wage increases in reaction to passage of the law. A worker's net pay may also fall if other factors that go into their paycheck changed -- such as an increase in health insurance premiums or higher state taxes.
Still, a little extra money in the hands of most Americans may also help boost support of President
Some workers received the increase with mixed emotions though.
"It's tough to be upset about more money in my pocket," said
He said that's not enough to feel like a windfall or change his spending habits, but is a pleasant change. Yet, he thinks the tax overhaul wasn't really about him or other workers, but more about corporations and the wealthy.
"I think the people this bill made the most difference for are the ones who needed it least," he said.
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