GAO: 30 Million Taxpayers Will Owe IRS 2018 Taxes

Some taxpayers are seeing more in paychecks now, only to pay later.

Robert Mangino
August 02, 2018 - 2:49 pm
W-4 Tax Form

By Jennifer Bloodworth for NewsRadio 1020 KDKA

PITTSBURGH (NewsRadio 1020 KDKA) — The Government Accountability Office says about 21 percent — nearly 30 million taxpayers — will owe money to the IRS next year.

The IRS issued new withholding tables to employers to reflect the new Tax Cuts and Jobs Act, but some employers haven't withheld enough from some employees.

Hefren-Tillotson Senior Vice President Jayme Meredith suggests those near tax bracket cutoffs should check if they'll owe.

“Go online, talk to your tax preparer, have them prepare kind of an estimated 2018 tax return based on these latest numbers and you may fall in that 30 million that won’t benefit from the tax cuts,” Meredith said.

Meredith told the KDKA Radio Afternoon News that for those who owe, it won’t be fun but it’s a simple fix.

“Talk to your HR,” Meredith said. “There’s what’s called the W-4 form and that’s the form you use to instruct your employer to make withholdings.”

The good news? The GAO also said about 25 percent of taxpayers will have withheld too much in 2018 and will receive a refund next year.

Meredith says those over payers can also utilize a W-4 form to get more money now rather than a lump sum at tax time.

Follow KDKA Radio: Facebook | Twitter | Instagram
Listen to KDKA Radio on the App - Download Now