Your paycheck will be a little fatter (probably) starting next month

Your paycheck will be a little fatter (probably) starting next month

HONOLULU (HawaiiNewsNow) - Here's some good news: Your paycheck will probably be a little fatter in February.

In fact, 90 percent of Americans should expect some extra cash starting next month thanks to the federal tax overhaul, the Treasury Department has said.

The increase in your paycheck will be based on new IRS witholding tables, released this month, which guide employers on how much to take out of your earnings to cover taxes.

Calculating your new take-home pay based on the withholding tables is kind of a bear.

(If you want to try it, click here to find the tables. You'll need your paystub and additional tax information included on your W-4 form.)

But accountant Dennis Kohara said you won't have to wait long to see the actual calculation in action: The IRS has directed employers to ensure the new withholding tables calculation is in place by Feb. 15.

One caveat: You might want to pay close attention to how much is taken out to ensure it's enough. If it's not, you might end up settling up (or shelling out more) when you file your 2018 taxes.

Kohara added that the little bump in your paycheck isn't the only benefit of the lower taxes in the short-run.

He urged people to keep an eye on their 401Ks — lower corporate taxes will mean higher revenues, which are passed on to investors.

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