Will More Taxpayers Owe The IRS?

-Source-NPR- More Americans will be writing a check to the IRS in April because their employers are not withholding enough from their paychecks following the new tax law the Government Accountability Office says in a new report. Based on simulations run by the Treasury Department the GAO says taxes for 30 million Americans 21 percent of taxpayers are being underwithheld by their employers meaning they are getting a larger check this year but will owe at tax time in April. According to the simulations 73 percent of taxpayers will be overwithheld and receive a refund from the Internal Revenue Service. When the simulation was run as if there had been no change in the tax law 18 percent of taxpayers or about 27 million would have experienced underwithholding and 76 percent would have been overwithheld. In both scenarios just 6 percent of taxpayers would have the correct amount of withholding. Who should be concerned? According to the GAO a hypothetical taxpayer who is married with two children earning $180000 annually $20000 of which comes from non-wage income and who itemizes deductions.