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New year means new federal tax brackets and likely bigger paychecks for lots of employees

KANSAS CITY, Mo. -- Many people will soon see more money in their paycheck as the new tax rates are now in effect.

The IRS is currently putting together new withholding tables and plans to release them by the end of this month. By February, many people should begin seeing more money in their paycheck.

The chart below breaks down the new tax brackets. They depend on how much you make and whether you are single or married.

New federal tax brackets

Under the new tax rates, most people will pay one-to-four percent less in federal taxes.

Once the IRS releases the new withholding tables, everyone will need to fill out a new W—4 form. Every employee fills out a W-4 and in the past, noted if they are married and the number of children in their family. The new tax bill eliminates those exemptions, so the old W-4 is now invalid.

Once employees turn in a new W-4, they will begin to see more money in their paycheck. What is paid into Medicare and Social Security will stay the same, but the taxes paid to the federal government will be less.

Federal officials say on average, families will see a boost of around $4,000 to their incomes as a result of all these tax changes. So there is hope that many will benefit from these tax changes taking place right now.