The IRS has released Publication 505, Tax Withholding and Estimated Tax. This publication is used to inform taxpayers of the withholding rates for the given tax year, estimated taxes, credits for withholding and estimated taxes for the prior year, and the underpayment penalty for the prior year.
There are a number of changes from the previous revision, and below is a nonexhaustive list of some of the changes:
- Most tax rates have been lowered from the previous year
- Moving expenses are no longer deductible for all except Armed Forces members on active duty
- Deduction for personal exemptions suspended
- Child tax credit increased and now there’s a new credit for dependents who do not qualify for the child tax credit
- Child must have an SSN issued before 2018 to claim
- There have been a number of changes to itemized deductions
- Standard deduction amounts have increased
To view Publication 505, please click here.
