Question

why will witholdings change in the future ?

Answer 1

Internal Revenue Service is changing the pay-check withholdings. The main reason is that IRS wants the taxpayer to account for multiple jobs within the household, inclusive of whether he held more than one position or the taxpayer and his/her spouse work and file jointly. They may also give the details of “other income” that didn’t have taxes withheld upfront, inclusive of the dividends, interest, and retirement income. Finally, the tax payer can provide list the number of deductions that are expected to be claimed; thus taxpayer can decrease their withholding and can take more money home