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IRS: Many Americans see surprise tax bill they didn’t expect

Many Americans were surprised by unexpected refunds or tax bills this season, and those owing the IRS can try to avoid it next year.

irs tax return form to find out if you owe taxes or can expect a refund

One major way to avoid this, according to the IRS, is to adjust your withholdings.

The IRS is just trying to get what you owe them in taxes at the end of the day.

Normally your employer will withhold income taxes to give directly to the IRS.

IRS: Smartest way to use your tax refund

Anything withheld is shown to you on your W-2 at the end of the year for you to file your taxes.

What is withheld depends on your income and information on your W-4.

Your W-4 has filing status, number of withholding allowances you claim, and any additional withholding you chose.

How do I pay off the taxes that I owe?

Depending on life changes like marriage, divorce, or income changes, it needs to be adjusted accordingly.

Most people do not know when they updated their W-4 last.

By not being aware, you could end up owing the IRS more than you thought.

Can you sort out delays on your tax refund?

How to check your withholdings for the IRS

The IRS offers a tax withholding estimator tool to use.

It helps estimate your tax withholding, how your refund and take home pay is impacted, and helps you find a withholding that works best.

You need your paystubs for all jobs and your spouse, any other income like investments, and your most recent tax return.

Adjusting your withholding accordingly can help you to owe less

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