Taxpayers Should Review W-4s Amid Release of New IRS Withholding Calculator

 – March 6, 2018
Taxpayers Should Review W-4s Amid  Release of New IRS Withholding Calculator

ROSELAND, N.J. — Many taxpayers have seen an increase in their take-home pay recently due to the withholding tables that were updated as a result of the Tax Cuts and Jobs Act of 2017. The New Jersey Society of CPAs (NJCPA) is reminding taxpayers to review their Form W-4 to avoid any surprises when filing their 2018 tax returns, particularly if they are claiming excess allowances on their W-4 based on prior-year deduction amounts.

Those who may be at risk for being under-withheld include those who had large itemized deductions in 2017, those who receive compensation for commissions and bonuses, and those who pay large state and local taxes.

Determining the right amount of withholding has always been somewhat of a challenge. The IRS has a new version of Form W-4 and a new  withholding calculator with the 2018 changes to assist taxpayers.

Below is a sample breakdown comparing the old and new withholding tables for a few sample taxpayers, barring other circumstances.  

Marital Status



Weekly Pay

Weekly Federal Withholding Under New Tax Law

Weekly Federal Withholding Under Old Tax Law

Decrease in Weekly Federal Withholding

% Change


























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The New Jersey Society of Certified Public Accountants, with more than 15,000 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities. Visit