Millions of Americans will now have to use an Internal Revenue Service tool to make sure that their new paychecks are accurate, administration officials announced Thursday, and people are not happy about it.
As President Donald Trump’s recent tax overhaul is rushed into law, with businesses expected to make the necessary payroll adjustments by Feb. 15, the Treasury Department is requiring employers to use old forms applicable to the old tax system, known as W-4s, in calculating how much to withhold in taxes from employees’ paychecks.
As a result, Americans are being encouraged to check their payroll using the IRS online calculator, which will not be available until next month, to make sure that they are not overpaying or underpaying their taxes. According to officials, only people who itemize their deductions will need to use the calculator to ensure their paycheck is accurate.
The announcement came as officials detailed guidelines concerning the implementation of the new tax rules, and it was met with criticism.
“Republicans are using brute force and speed to implement a law that will deliver a financial blow to hardworking Americans all across the country,” Sen. Ron Wyden (D-Ore.) said in response.
Online, voting and taxpaying citizens are angry.
So, are they PURPOSELY under withholding to make it appear that folks getting bigger paychecks? And then those same folks will be hit with underpayment penalties when they file for 2018 tax year in 2019? Disguising the ACTUAL tax benefit to average Americans?
— Joanna Wishner (@jwishner) January 11, 2018
https://twitter.com/danwlin/status/951540755407036416
https://twitter.com/Teresa90773625/status/951541811364945921
https://twitter.com/mcginty_kerri/status/951548143551877120
Senators pushed through what was a major legislative victory for Trump in early December, in a vote that split lawmakers clean along partisan lines, with reforms that slashed the corporate tax rate from 35 percent to 20 percent and promised tax cuts for working Americans.
While Democrats criticized the projected $1.5 trillion loss in government income across the next decade, Republicans dismissed the notion and claimed it would kickstart economic growth that would make up ground.
