If you’ve been getting used to fatter-than-usual paychecks this year, it might be too good to be true.
You could be one of 30 million Americans who will be cutting a check to the IRS this spring because your employer didn’t withhold enough money.
At least 21 percent of taxpayers are expected to owe taxes as a result of their employers underwithholding, according to simulations run by the Treasury Department in a new report from the Government Accountability Office.
Those simulations are based on updates to the U.S. tax code Congress passed last year.
Under the prior tax code, 18 percent — a 3 percent change — of taxpayers would’ve owed the IRS because of underwithholding.
The message? Contact your employer’s human resources or payroll department as soon as possible and see if you need to update your withholdings.
PHOTO CREDIT: michael kooiman–Flickr–CC
Peekz ConsultiN LLC is a Pittsburgh-based accounting firm, located in the West Side, that caters to individuals, small businesses and nonprofit organizations. We aim to empower clients to help them take control of their finances and achieve their dreams.