The federal tax cuts in the new tax law may start showing up in your paycheck as early as this month.
by Jeanne Sahadi
Many workers could see a bump in their take-home pay as employers start using the new IRS income tax withholding tables.
The Congressional Budget Office estimates employers are likely to withhold $10 billion to $15 billion less from workers every month as a result of those tables.
To give you a ballpark idea of how the tax cuts might translate into higher take-home pay, CNNMoney asked payroll service provider ADP to make estimates for two types of filers who get paid every two weeks: a single filer taking one withholding allowance and contributing 5% of his paycheck to a 401(k); and a married joint filer taking two allowances and also socking away 5% in a 401(k).
Among single filers grossing between $46,000 and $162,000, their bi-weekly paychecks could go up by between $40 and $190 relative to last year.
For instance, someone making $57,000 may see roughly $60 more per paycheck. If she grosses $162,000, her take-home pay could rise by $190.
Married workers making between $51,000 and $167,000 might see anywhere from $30 to $172 more per paycheck.
So, for example, a joint filer making $61,000 might see an extra $40 every two weeks. If he grosses $114,000, his net pay could rise by $115 every two weeks.
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