Millions More Of Americans Are In For A Bad Surprise Come Tax Time

August 2, 2018

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There are good surprises like finding a dollar bill in the street, meeting a good friend you haven't seen in a while and even a birthday party.  But there are bad surprises, such as realizing you owe money to the government when you normally would’ve received money back as a tax refund.  Changes in the tax law that are effective this year mean you may not have enough of your paycheck withheld. The Government Accountability Office (GAO) ran some simulations and found that roughly 3 million Americans are going to owe money for first time that have received a refund in the past. In particular families that file jointly who have itemized deductions in the past should check to make sure you have enough tax withheld since many deductions are no longer eligible. Even if you are not married or file separately, now would be a good time to verify your W-4 with your employer.  The IRS has a withholding calculator online you can use to make sure you are having enough tax withheld [CLICK HERE TO USE].  The report estimates that 73% of Americans over-withheld tax and receive a refund from the Internal Revenue Service with just 6% actually having the correct amount of withholding.

SOURCE: Jezebel

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