“Bigger paychecks coming to workers thanks to tax overhaul, but experts warn you could owe the IRS next year”

Posted on 02.05.18

“Bigger paychecks coming to workers thanks to tax overhaul, but experts warn you could owe the IRS next year”

Keiter's Tax Practice Leader, Gary Wallace, was recently quoted in the following Richmond Times-Dispatch article written by GREGORY J. GILLIGAN Richmond Times-Dispatch.

Excerpt:

“...For example, a single taxpayer who is paid monthly earning $75,000 annually with one exemption will likely see about $2,200 annual reduction in federal withholding this year compared with last year, according to calculations by Gary Wallace, the tax practice leader at Henrico-based accounting firm Keiter.

A married worker with two allowances earning $75,000 a year would see about $1,600 less taken out of his or her paycheck, he said.

“The big take away for these changes is that not only did tax rates and withholdings change, the tax act made other significant changes that also need to be considered, mostly around the law changes in the areas of deductible interest and state and local taxes,” Wallace said. “Since the standard deductions were increased, some taxpayers may no longer need to itemize deductions.”

All taxpayers should take a look the new IRS calculator when it becomes available later in February to ensure they are having the correct amount withheld, Wallace and other tax experts say. And they should update the information on their W-4 after the IRS releases a revised version later this year.”

Access Full Article


Each taxpayer’s situation is unique and you should speak with your tax advisor before making any decisions. If you have any questions, please contact your Keiter representative or Email | Phone: 804.747.0000. We are here to help.

We will continue to share our insights on the finalized tax changes for businesses and individuals in the coming months. Sign up for our newsletter to stay informed on tax and other accounting topics.

Additional Individual Tax Planning Resources

Sources

Richmond Times-Dispatch
Photograph: RTD/THINKSTOCK

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Posted by: Gary G. Wallace, CPA

Gary provides tax services to public and private entities and their owners in a variety of industry segments, including manufacturing, retail, real estate, and financial services.  Gary has significant knowledge and experience in individual taxation, business taxation, including C and S corporations and partnerships.  He advises clients on all aspects of tax matters, including tax accounting methods, multi-state tax matters, mergers and acquisitions, income tax accounting and representation with tax authorities. He is the leader of the Firm's Tax Practice and a leader in the Firm’s Manufacturing, Retail and Distribution industry team.