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2019 New Withholding Tables: Personal Finance 101

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An important change was made under the Tax Cuts and Jobs Act where withholding tables were updated.

Withholding tables are guidelines used by employers to determine how much tax to withhold from your paycheck, and are based on things like wages, marital status, and the number of withholding allowances.

Because what you withhold from your paycheck is important, understanding these new changes will be important. If you withhold too little, you’ll end up getting a bill for taxes owed; if you withhold too much, then you’ll get a refund since you ended up making an interest-free payment to Uncle Sam.

The new tables reflect the increased standard deduction, which was basically doubled as part of the new tax code, and they also display the end of personal exemptions and lower individual income tax rates.

Personal Finance 101 is a video series that aims to help you take control of your money. It’s hosted by Zacks Editor Madeleine Johnson, and covers a wide range of personal finance related topics. To watch more video content from Zacks, subscribe to Zacks Investment News today!

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