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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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