The IRS is trying to spread the word — Check your tax withholdings now to avoid possible surprises in April.
The federal agency is targeting several groups of taxpayers: including families with children; taxpayers who earn a high income; taxpayers who received a large refund last year plus others.
The warnings come after a recent report from the Government Accountability Office indicated that at least 21 percent of taxpayers are expected to owe taxes as a result of their employers underwithholding.
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The IRS encourages taxpayers to use the IRS Withholding Calculator to determine whether their employers are taking enough out of their paychecks.
Not sure how to use the calculator?
The IRS provides instructions here.
“The earlier people check and adjust their withholding, the more time there is for withholding to take place evenly during the rest of the year,” the IRS said in a note this week to tax professionals.
Anyone who changes their withholdings this year should do another checkup at the beginning of 2019 to avoid too much being taken out next year.
If you have any additional questions about your withholdings, don’t hesitate to reach out to Peekz ConsultiN and make an appointment.
PHOTO CREDIT: Marco Verch–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.