After tax reform, bigger paychecks come with some uncertainty

NEW ORLEANS, LA (WVUE) - The tax overhaul in recent months is now beginning to deliver bigger paychecks to workers across the country.

"I'm very excited actually. I'm considered a single mom right now, so yeah, definitely it's going to bump me up quite a bit so I'm really excited about that," said Sonia Murphy.

"Ninety percent can expect to see an increase. That's always good news, right?" said CPA Kemberly Washington.

A middle-income household could see, on average, $900 a year. Washington says while a bigger paycheck seems great, there's some uncertainty.

"Proceed with caution because the withholding tables of course. They're reducing the amount of taxes and it increases the paycheck, but you want to check throughout the year and make sure you're on the right track," she said.

Lower tax withholding on paychecks is just part of the complicated changes to the tax law. Someone who gets a raise may face higher taxes next year.

"If you're withholding too little, you may owe at tax time. If you're withholding too much, you'll get a larger refund because Uncle Sam is using your money tax-free throughout the year," Washington said.

Washington said everyone should take a step back and look at their withholding. She says the IRS will eventually release a withholding calculator that can help.

"That's why the IRS is encouraging people to check on their website, use the withholding calculator. That gives you an opportunity to put in your personal income, your dependents, all of these things that would impact individuals one by one," Washington said.

Washington said everyone should check before they get caught off guard at tax time.