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Home > Blog > Here's how much paychecks may go up this month under new tax law
SATURDAY, MARCH 17, 2018

Here's how much paychecks may go up this month under new tax law

 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.

Read more by clicking here. Call us for a free evaluation. 1 800 301-8818

 

Posted 10:15 AM

Tags: annuities, lifetime income, money, retirement, aim inc, free evaluation, upland, new laws, tax checks,
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