Many Taxpayers are Under-Withholding on their Paychecks
A recent report from the Government Accountability Office (GAO) found that many employers are not withholding enough money from their employees’ paychecks following the passage of the Tax Cuts and Jobs Act (TCJA). This will result in more taxpayers having to send a check to the IRS next spring. After the TCJA went into effect, the IRS had cautioned taxpayers that they may need to review and update their withholding as a result of the new law. Many taxpayers did not heed that warning.
According to the GAO report, nearly 21% of taxpayers are being under-withheld by their employers. These employees are currently enjoying the larger paycheck every month but, they may be disappointed in April when they find out they did not withhold enough taxes to cover the amount they owe. If you are concerned about your withholding amount, you can use the IRS Withholding Calculator and see if you are withholding enough.
Contact The Howe Law Firm and we'll help you get ready for the 2018 tax season.
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