Trump Tax Deferral Starts Today: What It Means For Your Paycheck
Starting today employers can pause withholding income tax from employee's paychecks.
But the key point here is this is deferral. Taxpayers will still be on the hook for those taxes come April of next year. A Fox 6 Milwaukee story says the deferral can only be used by those making $104,000 a year. As you can imagine, folks in Washington DC have disagreed on the merits of this executive action and its benefits as some feel, and accurately so, that this will not do anything to help out of work Americans. If you are wondering if you will get this deferral, CNN says it will be up to employers to put it in place.
But hopefully, what it will do, is put some expendable income back in people's pockets for the time being that they will hopefully put back into our local economies. We know here in the Capital Region many businesses have been suffering, and maybe this short term relief will bring some relief. Though you have to imagine some will be leery of taking advantage of the deferral because at some point, that money will have to go to Uncle Sam.
But if you do your math right and maybe end up with money back every year, it looks like you could have some extra money in your pockets in the coming months.