Americans are still trying to figure out how the Tax Cuts and Jobs Act will affect their 2018 tax bill, and the IRS has a new calculator to help do just that.
The IRS, consumer advocates and financial columnists are promoting the calculator as a way to prevent taxpayers from being shocked in 2019 by changes in how much they owe.
The new tax law made significant reforms to the standard deduction, personal exemptions, the child tax credit, other deductions, tax rates and tax brackets.
“Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation,” said Acting IRS Commissioner David Kautter.
Depending on what they learn from the calculator, employees might want to adjust how much federal tax is withheld from their paychecks for the rest of 2018, and they can submit a new W-4 to do so.
You can find the new IRS tax calculator here.