One reason people get into trouble with the IRS and end up coming to JK Harris is not withholding enough taxes from their paycheck. What happens? Tax season rolls around, they’re hit with a big tax bill and they do not have enough money to pay up.
What do they do? Usually, they fall out of the system. They stop filing tax returns because they are unable to pay their ever-growing back tax debt. And, when the IRS doesn’t catch up with them for the first year or two, they start to relax. Just when the taxpayer thinks they won’t be found out, they start receiving notices from the IRS.
Don’t let it get to this point! The IRS offers a withholding calculator on their website. This tool allows you to submit your information to determine if you are having enough tax withheld from your pay. It can also tell you if you are having too much taken out – after all, who wants to loan their money to the government for 0% interest?
You can find the withholding calculator on the IRS’ website here. Be sure to have your most recent pay stubs and your most recent tax return handy. You may estimate if necessary, but having the most accurate numbers will provide you with the most accurate information.