As the end of the year approaches, the IRS encourages taxpayers to consider a tax-withholding check-up. When taxpayers take a close look to make sure that the right tax amount is withheld now, they can avoid unexpected tax bills next year. Here are examples of taxpayers who would benefit from a withholding check-up:
Taxpayers who received large tax refunds. When taxpayers have too much tax withheld from their paychecks, they pay too much tax during the year. They can change their withholding to have money upfront rather than waiting for a bigger refund.