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IRS updates withholding tables to reflect new tax law

The Internal Revenue Service (IRS) has updated the income tax withholding tables for 2018 to reflect changes from the Tax Cuts and Jobs Act.

The new tables reflect the increased standard deduction, the repeal of personal exemptions and adjusted tax rates included in the 2017 tax law.

One of the goals of the new tables is to produce an accurate amount of tax withholding for people with simpler tax situations, helping them avoid over- and under-withholding of tax as much as possible.

Individual taxpayers aren't required to make any changes to their Form W-4 right now. But the IRS expects that many taxpayers will have to do so later this year, when the agency releases a revised version of the form.

Employers should begin using the new rate no later than February 15, 2018.

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