Tax cuts beginning to show up on paychecks

Jim Cunningham
January 29, 2018 - 3:28 am

For most Americans take-home pay is about to get a little larger.

With the passage of the federal tax reform, workers are beginning to deposit larger paychecks. The IRS is wants employers to begin using the new withholding tables by February 15. 

Peter Newman, host of Moneyline, Saturdays from 2-3 on KMBZ, said there is no doubt about it, everybody will see  reductions in their federal tax withholding.

"A married couple with $50,000 total taxable income will see about a $950 federal tax reduction," Newman said. "A couple making $100,000, federal tax reduction is going to show roughly $2,600 less federal tax because of the way tax laws have changed."
Newman said if you don't see the tax reduction over the next few paychecks, check with your employer and make sure they are using the most up-to-date withholding guidelines.

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