Those who claimed allowances for itemized deductions under prior law should claim fewer allowances in 2018 for itemized deductions—even if they no longer itemize.
- Tax rates have decreased in general
- Standard deductions have almost doubled:
- Single: $6,350 → $12,000
- Head of Household: $9,350 → $18,000
- Married-Joint: $12,700 → $24,000
- Exemptions are eliminated
- Child Tax Credit increased from $1,000 to $2,000/child and eligibility expanded
- New credit for other dependents of $500/dependent is added
- Changes are made to allowable itemized deductions
Use the Withholding Calculator and determine if you need to fill out a new Form W-4 with your employer(s). Some of its features are:
- It allows for other types of income and offsets to income.
- It accounts for withholding-to-date (e.g., mid-year).
- It accounts for part-year jobs.
- It prevents users from entering unallowableor inconsistent amounts.