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U.S. Treasury Secretary Steven Mnuchin speaks at a daily press briefing at the White House in Washington, DC, on January 11, 2018.
The IRS has launched its new income tax withholding calculator, giving workers guidance on how much they should deduct for these levies under the new law.
Treasury Secretary Steven Mnuchin announced the release of the on line tool at a press conference on Wednesday.
This is the latest step the tax collection agency is taking to reflect changes stemming from the Tax Cuts and Jobs Act. The new legislation has increased the standard deduction, done away with personal exemptions and trimmed income tax rates.
In January, Treasury released new withholding tables to give employers and payroll companies guidance on how much they ought to deduct from workers’ pay.
“This is really about creating a tool for American taxpayers to doublecheck their withholding,” said Mnuchin of the calculator.
Though the calculator is designed to work for wages, it includes a line that will allow users to input income from self-employment or other non-wage sources.
The new calculator is available here.
It’s a good practice to 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.
