So, I guess as a result of the new tax law, the amount of federal withholding went down (for me, at least). But it dropped by $112, which is fairly significant. While it's nice to have that extra amount in my paycheck, I'm wondering how this might affect my refund next year. I've always claimed 0 exemptions because I wanted the most amount taken out of my check in order to get a larger refund. In essence, doesn't this reduced withholding mean that since I'm having less withheld throughout the year it could result in a much smaller refund when I file next year? Thanks in advance.
The new tax reform will more than likely add a little to your paycheck, but you probably don't need to worry about what your refund will look like next year.
You're already claiming zero allowances, and even though we lose the personal exemption, the standard deduction nearly doubles for 2018, and tax rates decrease for most.
You can always make Estimated Tax payments and send that $112 back to US Treasury if it makes you feel better.
Nahhh 🙂 I think I'll up my monthly contributions to the Humane Society and NPR, though!
The new tax reform will more than likely add a little to your paycheck, but you probably don't need to worry about what your refund will look like next year.
You're already claiming zero allowances, and even though we lose the personal exemption, the standard deduction nearly doubles for 2018, and tax rates decrease for most.