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Avoid a 2018 Tax Penalty

January 3, 2019

The chance you underwithheld on your taxes in 2018 may be higher than you think. A 2018 report by the Government Accountability Office (GAO) suggests that 21% of taxpayers, more than 30 million people, may owe taxes due to underwithholding in 2018. If you’re one of those people, you have until Jan. 15, 2019, to avoid a penalty with an estimated tax payment.

The GAO Report

Your employer is required to withhold taxes on your pay based on withholding tables provided by the Internal Revenue Service (IRS), but you can reduce the amount withheld by claiming withholding allowances.

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