Millions will see more money in their next paycheck due to tax bill
It’s your money, and you’re about to see more of it in your next paycheck.
Starting Friday, many will start feeling the effects of the new tax reforms.
With a bigger paycheck expected every week, people are making plans due to the tax reform Congress and President Trump passed.
The Treasury Department estimates that 90 percent of Americans will see more money every pay period. But how much?
“It could be anywhere from $20 to a couple hundred dollars depending on martial status and dependents and so on. Everybody is being affected for the best,” said business consultant Maikel Delgado.
- A single person with no children making $25,000 per year would see an increase of $12 every two weeks.
- A married person with two kids making $75,000 per year would see an increase of $60 every two weeks.
- A single person who is the head of the household with one kid, making $300,000 per year would see an increase of $100 every two weeks.
While many plan on spending that extra money, financial experts say some of it needs to go toward investments, a tool needed for work, a college class for more work training or toward your 401k.
That extra cash also means less for the federal government’s use, including lowering the deficit—which means the price of borrowing could go up in the future.
If you haven’t seen the increase, your employer has until Feb. 15 to make the change on your check.