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.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera