Most taxpayers may end up with about the same status or slightly overwithheld under the new tables, but higher-income individuals should take a second look, said Cari Weston, director of tax practice and ethics at the American Institute of Certified Public Accountants.
“Those in the income range of $200,000 to $500,000 may be impacted negatively or underwithheld,” she said.
That’s because the individual income tax rates changed for those filers from 2017 to 2018, bumping some of them into higher brackets.
“More of their income is taxed at the next higher marginal rate than last year,” said Weston.
For instance, last year, single individuals with taxable income of $191,650 to $416,700 were in the 33 percent bracket. This year, many of those filers will be in the 35 percent bracket, which applies from $200,000 to $500,000 of taxable income.
See below for the new tax brackets for single filers.