WASHINGTON — Millions of Americans are now getting bigger paychecks as a result of the new tax law. So the government is issuing an online calculator for figuring whether enough money is being set aside.
The calculator unveiled Wednesday by the Treasury Department and the Internal Revenue Service helps people determine whether they have the correct amount of money withheld by employers from paychecks — to avoid facing a huge tax bill for 2018. The calculator asks taxpayers to estimate their 2018 income and other items that affect their taxes, such as filing status and number of dependents.
The changes reflect the massive Republican tax plan signed into law in December.
Experts advise checking the calculator to ensure people have the correct number of withholdings and updating W-4 forms filed with employers.