Author Topic: New Tax Bill: My Paycheck went up today  (Read 1563 times)

v8rx7guy

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New Tax Bill: My Paycheck went up today
« on: February 01, 2018, 10:19:12 AM »
The IRS updated the tax tables within the last few days and apparently payroll has updated their system as my first paycheck under the new tax law went up by about $8 without any other changes (I get paid weekly).  Worth about $400 in 2018... it's not much but better than a stick in the eye.  I could probably up my witholdings due to the increase in the Child Tax Credit, but for now with no other changes it's looking better.  Post up when you see your first paycheck under the new law.
« Last Edit: February 01, 2018, 10:46:18 AM by v8rx7guy »

kenmoremmm

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Re: New Tax Bill: My Paycheck went up today
« Reply #1 on: February 01, 2018, 01:20:38 PM »
i'm afraid the stick in the eye will come in the form of $1.5T of additional national debt to be paid by someone at some point in time.

swampwiz

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Re: New Tax Bill: My Paycheck went up today
« Reply #2 on: February 01, 2018, 10:24:17 PM »
i'm afraid the stick in the eye will come in the form of $1.5T of additional national debt to be paid by someone at some point in time.
THIS!

alanB

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Re: New Tax Bill: My Paycheck went up today
« Reply #3 on: February 02, 2018, 07:55:37 AM »
New withholding info is published here, in case you want to double-check your payroll:
https://www.irs.gov/pub/irs-pdf/n1036.pdf
(see page 3)

Some very misguided people thought I was paying too much tax, so my withholding went way down.  I usually love paying less tax!  Why do I feel so sad?!

i'm afraid the stick in the eye will come in the form of $1.5T of additional national debt to be paid by someone at some point in time.
oh right that was why

Vegasgirl

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Re: New Tax Bill: My Paycheck went up today
« Reply #4 on: February 02, 2018, 09:09:44 AM »
I noticed the same thing this morning both me and DH paycheck went up and I know neither of us got raises !!!  I'm afraid our tax bill at year end will be higher since we'll be losing some of our big deductions.

MDM

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Re: New Tax Bill: My Paycheck went up today
« Reply #5 on: February 02, 2018, 10:46:54 AM »
I'm afraid our tax bill at year end will be higher....
Unless your income varies widely and unpredictably, no need for fear of the unknown.  Just use your 2017 numbers in a 2018 tax prediction tool.  Of course, that may replace fear of the unknown with displeasure at the known, but you may also be pleasantly surprised.

Rcc

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Re: New Tax Bill: My Paycheck went up today
« Reply #6 on: February 05, 2018, 05:50:46 AM »
Paid biweekly here. Saw it hit 2nd check of January. Side observation: thanks to ERE/MMM, I saw it as only an extra 100$ a check. A colleague (who had the misfortune of 4 layoffs in the last 10 years) thought it was huge.

Now, trying to dial in 2018 taxes? PITA. The 2nd earner worksheet last I checked hasnít been updated. However, we have dropped from the 28% bracket to 22%. Should be interesting to see what the doubled joint exemption does next year...

Iíd complain about itís temporary nature, but our FIRE window occurs before the changes expire.

I'm a red panda

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Re: New Tax Bill: My Paycheck went up today
« Reply #7 on: February 05, 2018, 06:43:00 AM »
Until I know what the end of the year situation is, I don't know that I care if my paycheck goes up or not...  That's just an effect of withholdings, and has very little to do with actual taxes.  (Mine did go up a bit.)


Of course, Paul Ryan thinks we should be happy with $1.50 extra a week.  Won't that be a huge help to the American middle class! 
« Last Edit: February 05, 2018, 07:21:27 AM by iowajes »

Mississippi Mudstache

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I'm a red panda

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Re: New Tax Bill: My Paycheck went up today
« Reply #9 on: February 05, 2018, 07:21:57 AM »
Hooray! Costco memberships for everybody!


But not the executive membership- just the regular one.  Don't get too fancy.

MEJG

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Re: New Tax Bill: My Paycheck went up today
« Reply #10 on: February 05, 2018, 08:21:15 AM »
DH's paycheck went up by $300, when asked the payroll co said with our previous withholdings we will now owe $0 in fed taxes... Yeah thats't not comfortable especially with some job changes for me on the horizon.   We're adjusting his w4 so SOMETHING gets taken out.

MDM

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Re: New Tax Bill: My Paycheck went up today
« Reply #11 on: February 05, 2018, 09:44:13 AM »
DH's paycheck went up by $300, when asked the payroll co said with our previous withholdings we will now owe $0 in fed taxes... Yeah thats't not comfortable especially with some job changes for me on the horizon.   We're adjusting his w4 so SOMETHING gets taken out.
Have you calculated what you expect to owe?

MEJG

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Re: New Tax Bill: My Paycheck went up today
« Reply #12 on: February 05, 2018, 10:22:30 AM »
Have you calculated what you expect to owe?

We're going from 2 W-2 jobs to a w-2 and a self employed service based LLC.  We have no way of predicting actual income this year,  next year we'll have a better idea.  With all the changes this year I'd rather have DH's job withholding and possibly over withholding..


MDM

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Re: New Tax Bill: My Paycheck went up today
« Reply #13 on: February 05, 2018, 11:59:28 AM »
Have you calculated what you expect to owe?

We're going from 2 W-2 jobs to a w-2 and a self employed service based LLC.  We have no way of predicting actual income this year,  next year we'll have a better idea.  With all the changes this year I'd rather have DH's job withholding and possibly over withholding..
Using withholding, instead of estimated tax payments, does have advantages.

The W-2 withholding will have to cover the self-employment tax, in addition to income tax, so you'll want an accurate-enough projection of all that in any case.  Good luck with the new venture!

NoStacheOhio

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Re: New Tax Bill: My Paycheck went up today
« Reply #14 on: February 05, 2018, 01:06:56 PM »
Have you calculated what you expect to owe?

We're going from 2 W-2 jobs to a w-2 and a self employed service based LLC.  We have no way of predicting actual income this year,  next year we'll have a better idea.  With all the changes this year I'd rather have DH's job withholding and possibly over withholding..

Depending on how much of a pain it is to adjust your withholding, you might want to run your actual numbers toward the end of 2018 and adjust W-2 withholding if necessary. Any amount withheld during the tax year counts as being properly withheld throughout the year, if that makes sense (you could theoretically withhold your entire tax liability in January without penalty).
The first step is acknowledging you have a problem, right?

https://forum.mrmoneymustache.com/journals/digging-out-of-a-hole/

Strick

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Re: New Tax Bill: My Paycheck went up today
« Reply #15 on: February 17, 2018, 01:17:02 PM »
I just had my tax appointment and for 2017 will pay about $140k total in federal/payroll taxes.  The CPA ran the same numbers thru what he thinks would be all the 2018 calculations and it would have been about $120k instead under the new law. 2018 will likely be another big year for me so I guess I'll have make out well under it, but then who knows (I've seen every tax bracket and it'll likely continue to fluctuates wildly until I pull the plug)