The Effects of Tax Reform on Bob

2018 Tax Liability Decrease $1,406

If Bob claims 0 on his W4, his 2018 tax REFUND will be $206 LESS than 2017.

  • In 2017, Bob’s employer withheld federal taxes of $156 each week, totaling $8,112. 

  • In 2018, Bob’s employer will withhold federal taxes $125 each week, totaling $6,500.

 

  • Bob will take home an additional $31 per week.​

  • Bob’s 2017 tax liability is $6,145.  

    • Because he withheld $8,112, he will receive a refund of $1,967.

  • Bob’s 2018 tax liability will be $4,739.

    • Because he withheld $6,500, he will receive a refund of $1,761.

If Bob claims 1 on his W4, his 2018 tax REFUND will be $50 LESS than 2017.

  • In 2017, Bob’s employer withheld federal taxes of $136 each week, totaling $7,072.

  • In 2018, Bob’s employer will withhold federal taxes $108 each week, totaling $5,616.

  • Bob will take home an additional $28 per week.

  • Bob’s 2017 tax liability is $6,145.  

    • Because he withheld $7,072, he will receive a refund of $927.

  • Bob’s 2018 tax liability will be $4,739.

    • Because he withheld $5,616, he will receive a refund of $877.

You are passionate about your business.We are passionate about your numbers.

CPA firm, Green Bay, IRS, Strive accounting, Strive tax, bookkeeping, forensic accounting, payroll tax, small business accounting, tax preparation, Green Bay WI, sales tax, financial statements, profit & loss, accountant, CPA
CPA firm, Green Bay, IRS, Strive accounting, Strive tax, bookkeeping, forensic accounting, payroll tax, small business accounting, tax preparation, Green Bay WI, sales tax, financial statements, profit & loss, accountant, CPA
CPA firm, Green Bay, IRS, Strive accounting, Strive tax, bookkeeping, forensic accounting, payroll tax, small business accounting, tax preparation, Green Bay WI, sales tax, financial statements, profit & loss, accountant, CPA
CPA firm, Green Bay, IRS, Strive accounting, Strive tax, bookkeeping, forensic accounting, payroll tax, small business accounting, tax preparation, Green Bay WI, sales tax, financial statements, profit & loss, accountant, CPA