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By Paul Morrone CFP®, CPA/PFS, MSA

With the Tax Cuts and Jobs act in effect for a full year, we are just now beginning to see the fallout of many of the changes that took effect only a short year ago. With the benefit of hindsight, it may be wise to review your 2019 income tax withholding as you look to prepare your 2018 tax returns. The new law came with lower marginal tax brackets nearly across the board (i.e. the 15% bracket was reduced to 12%, etc.), which was a welcomed change for many. In response, the IRS released updated withholding tables which required that income tax be withheld at a lower percentage rate based upon your salary.  This is why you may have noticed an increase in your take home paycheck or pension payment in February or March of last year (no, you didn’t get an unsolicited raise!). However, with this positive change we need to be careful of some potentially negative side effects.