Tax day is usually bad enough, but next year’s tax day could end up being one for the books. The Government Accountability Office (GAO), a legislative agency that delivers data to Congress, believes that approximately 30 million people—21% of US taxpayers—will owe the IRS money next year because their employers withheld too little from their paychecks, according to NBC.
Per the report, if the tax laws hadn’t changed, just 18% would be underwithheld, so there’s an uptick.
Wondering if you might be a part of the group that is going to owe taxes come April? Dual-income, large families, gig economy workers and those who have been itemizing deductions need to be particularly mindful, according to the report.
Consider this a wake up call: Tax experts suggest that your W-4 should be updated and reviewed every year. The IRS offers a withholding calculator for taxpayers to figure out how much should be deducted from their paycheck. To make sure something like this doesn’t happen again, double check your numbers either yourself, or with the help of a CPA.
Melissa Labant, the Director of Tax Policy and Advocacy at the American Institute of Certified Public Accountants told NBC: “Given the changes in the tax code, it’s a good time to look at your W-4. You don’t want any surprises, especially when that surprise is a large balance due come tax time.”
Feature Image: Twenty20
Found this Helpful? Why Not Share?
We have a small favor to ask…
The WOT is an online reputation service, that provides crowdsourced reviews of websites.
While The Money Manual is a new site, because of the website’s previous owners, we have a low WOT score.
We are asking our readers to share their honest feedback for how we are doing by heading to WOT and rating The Money Manual. It will only take a minute, we promise. Thank you!