2018 Tax Reform Affects on the Mobility Industry - Updates

Recently, the IRS released an updated table and provided supplemental withholding advice for 2018. The new supplemental withholding rate for 2018 will be 22%, not 28% as has been predicted. This is good news for the mobility industry.

Here is an excerpt from the IRS release, which is also linked here:

"The new law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.

For people with simpler tax situations, the new tables are designed to produce the correct amount of tax withholding. The revisions are also aimed at avoiding over- and under-withholding of tax as much as possible.

To help people determine their withholding, the IRS is revising the withholding tax calculator on IRS.gov. The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.

The IRS is also working on revising the Form W-4. Form W-4 and the revised calculator will reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and repeal of dependent exemptions."

Here's the link: