Here’s another reason to revisit your tax withholding: Just over 2 in 10 taxpayers will owe money to the IRS next year.
On the other hand, GAO said, nearly three-quarters of taxpayers will have withheld too much during 2018 and will receive a refund next year.
Earlier this year, the Treasury Department and the IRS released updated withholding tables to reflect the new Tax Cuts and Jobs Act.
Changes stemming from the new law include the end of personal exemptions, the doubling of the standard deduction and lower individual income tax rates.
The withholding tables are guidelines your employer follows in order to deduct the appropriate amount of income taxes from your paycheck.
They also work with Form W-4, which you can use to tailor the taxes withheld from your pay.
The GAO also found that under the old tax law, 18 percent of taxpayers — roughly 27 million people — would have not withheld enough money.
Here’s how to review your pay stub and head off a surprise tax bill from the IRS in 2019.