The IRS has issued Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding. These new tables take into account the changes made in P.L.115-97, better known as the Tax Cuts and Jobs Act (TCJA), which reduced individual income tax rates and made other changes.
As the IRS had indicated, the new tables continue to use withholding allowances in the computation of tax to be withheld, something often referred to as “exemptions” or “dependents” by many employees. The amount has not actually just related to exemptions for years, so the fact that TCJA removed personal exemptions doesn’t mean that these allowances can no longer be used.
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