According to Treasury Department modeling, a couple in which both partners earn €1,500 per month would see a total IRS tax reduction of €724 between September and December.
This simulation (for a profile of a couple with two dependents) was carried out taking into account the new income tax tables that will apply from September and which include, for September and October, a mechanism to offset deductions already made in excess between January and August.
That €724 represents the amount received as a result of the €320 reduction in IRS tax withholding that the couple will have in September and October, in addition to the €28 reduction in withholding (compared to the amounts they have paid since the beginning of the year) in November and December salary and Christmas bonus.
If it is a couple (both owners and two dependents) who both receive a salary of €1,000, the IRS reduction due to withholding will be €202 (€80 in September and October and €14 in subsequent months).
With a salary of 2,000 euros (same family profile and always taking into account the gross value), the savings on retention would be 1,338 euros (taking into account the four salaries that will be paid until the end of this year and the Christmas bonus).
For a pensioner with a pension of up to 1,000 euros (gross), income tax will be reduced by 58 euros in September and October, and then by one euro, for a total of 119 euros.
If you receive a pension of €1,500, the deduction is reduced by €397 and by €647 if the pension is €2,000.
These calculations do not include an additional supplement of up to €200 that will be paid to pensioners with lower pensions in October, which the IRS will withhold itself.
Author: Lusa
Source: CM Jornal
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