The Government Accountability Office (GAO) recently did a study on federal tax withholding. The study found that many employers are not withholding enough from employees’ paychecks under the new tax law.
What does this mean?
This means that more Americans are likely to owe more than usual for their 2018 taxes. So, how many Americans will this affect? The GAO believes around 30 million taxpayers will be affected.
So, how can you know if you are withholding the correct amount based on the new tax law? The IRS released a tax withholding calculator online. Consulting the calculator to ensure that you are withholding the correct amount will save you in long-run.