The new May 2, 2018 release accounts for the removal of personal exemptions which have been suspended from 2018 to 2025, and is effective immediately.
At this time, it is unclear whether the new amounts will be applied retroactively to January 1, 2018, so employers who have already who have already applied amounts issued early in the year will most likely need further guidance. It is possible that employers may be granted a grace period to comply with the new tables. Also possible is that employees may have to file new status statements.
The revised tables include significant changes in exemption amounts, for example:
For a single taxpayer who is paid weekly and claims 3 dependents, $470.20 would be exempt from levy (as opposed to the January table amount of $364.42)
For a married taxpayer filing jointly who is paid biweekly and claims two dependents, $1242.32 would be exempt (as opposed to the January table amount of $819.23)
These new tables will change each year based on inflation and the table for exempt amounts for blind taxpayers and taxpayers age 65 and older will remain unchanged.
Additional changes to the revised tables include subheadings under each table’s filing status for single, married filing joint return, head of household, and married filing separate return. Subheadings on the new tables now read Number of Dependents Claimed on Statement instead of the old table subheadings of Number of Exemptions Claimed on Statement. The new filing status tables also now contain a column for amounts when claiming no dependents.
These new tables should be used in conjunction with Form 668-W, Notice of Levy on Wages, Salary and Other Income, which the IRS typically uses to levy an individual’s wages, salary or other income (including bonuses, commissions, benefit and retirement income). Form 668-W is scheduled to be revised, but no date for revision has yet been announced by the IRS.