Tuesday, November 20, 2018

A troubling new IRS report suggests many Americans may be giving money right back to the government


By Alex Raskolnikov
Nov 01, 2018


millions of Americans looking forward to their tax refunds are about to be disappointed, even upset. They will not see their expected refunds when they file their returns in 2019. Even worse, many will be required to pay extra taxes. Why the change? The Republicans’ push to sell their tax law to the American public is the culprit.


How concerned is the Advisory Committee about a major increase in the number of “under-withheld” taxpayers who will have to pay extra tax during the filing season? Concerned enough to officially recommend that the IRS waive penalties for under-withholding.

That’s right, if you did nothing during 2018 about your taxes at all, you may end up owing not just extra taxes, but penalties as well — all because the IRS decided to rely on the old forms that you may have given to your employer years ago. The idea, of course, was for you to “start seeing a lot more money in your paycheck” as soon as possible, as Trump said. Unfortunately, all that money can come right out of your bank account in a few months, and then some.

If the IRS Advisory Committee is worried, you should be as well. So do yourself a favor — check that IRS withholding calculator. You may need to cut back on your holiday shopping after that.


IRS Withholding Calculator


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