Trump tax reform decreases federal and state withholdings in paychecks
TULSA, Okla. (KTUL) —
Tax season is busy if you're a CPA, especially this year. Groups like Muret CPA are getting a lot of questions about taxes with the new Trump tax reform plan going into effect as we speak.
"We do payroll for over 100 clients, and so far, through this week running payroll, the new tax tables have been implemented," said Rachael Stagner, a payroll expert with Muret.
That's good news for a lot of people. For example, a family of four making $74,000 a year in Tulsa is set to save just over $2,000 in taxes, $1,200 if you're single and making $52,000 a year.
"The changes are aimed at avoiding over and under on your withholdings. It's trying to level out within the year," said Stagner.
That should mean the days of bills and big fat refund checks are in the past.
"Social security and Medicare stay the same," Stagner said. "It's your federal and state withholdings that are changing. They are actually decreasing. The new tax tables were released in January; they are just now being implemented."
In the next few weeks, the IRS is going to be putting out a calculator that will allow you to put in your information and figure out how much extra you should be earning each paycheck over what you have been earning.
"That should be the tool to help make sure that you aren't over or under when filing taxes," said Stagner.
Right now, she says to just stay the course until that calculator comes out.
Ask your payroll manager if you have any questions about your new paycheck.