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Old 12-22-2017, 08:01 AM   #53
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Originally Posted by Shane View Post
Assuming Trump signs it, the new tax rates tax effect January 1st. It will take a couple more weeks for the IRS to adjust the withholding tables that employers use to calculate how much income tax to withhold from your paycheck, so it will be February before you see a little more take home pay in your paycheck. Even though they will still be withholding more in January, you will still ultimately be taxed at the new lower rates for the entire year. Whenever you file your 2018 tax return in early 2019, you'll settle up on the final numbers then, as usual. You'll either get a refund if you had too much withheld, or you'll write an additional check when you file if you didn't withhold enough during the year. Either way, the total amount that the IRS ends up taking from you for 2018 will be lower than it would have been if the tax cut would not have passed.

There is talk about Trump waiting until January to sign the bill. If that happens, the tax cut still takes effect January 1, 2018. But it would postpone required cuts to federal spending until 2019. If he signs the bill into law during 2018, then they will be required to cut spending in 2018. That would be best, of course. But they won't do that, I'm sure.
Good chance no signing until January. Need to make sure no backlash for midterm elections due to cut backs hitting voters. I have not seen anything about doing basic taxes on a postcard? I guess the CPA ASSOCIATION got that kicked out.

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